Tata Capital IPO: Tata Group To Launch India’s Biggest Ever IPO; Know IPO Size, Expected Date And Other Details

Tata Group's primary investment holding entity and promoter of Tata Group companies has recently been categorized as an upper-tier Non-Banking Financial Company (NBFC). The NBFC is preparing to launch its initial public offering (IPO), which is going to be the largest ever public issue.

Tata Capital Limited is the flagship financial services company of the Tata Group and is a subsidiary of Tata Sons Private Limited.

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On September 14, Reserve Bank of India (RBI) rolled out a list of 15 15 financial companies in the upper layer NBFC category, which included Tata Capital. As per RBI guidelines, an upper-layer NBFC must list within three years of being notified.

RBI has categorized another Tata Group entity, Tata Capital Financial Services, as an NBFC. However, it is exempt from mandatory market listing obligations because of its merger with Tata Sons.

The central bank listed Tata Sons as an upper-layer NBFC, which means that the company will have to be listed within three years of time frame for getting this status. As per calculations, Tata Sons will hit the public market in September 2025.

“We will comply with RBI guidelines," said Rajiv Sabharwal, the managing director of Tata Capital.

Currently, Life Insurance Company (LIC) currently holds the record for the largest IPO in India's economic history, with its IPO valued at Rs 21,000 crore. It is reported that the IPO of Tata Sons is expected to surpass this amount, potentially doubling the size of LIC's IPO.

The forthcoming Tata Sons IPO is expected to yield substantial profits for its shareholders, including Tata Trust. The company's estimated valuation stands at a noteworthy Rs 11 lakh crore, and Tata Sons intends to divest 5% of its company shares as part of this IPO.

The conglomerate is seeking a valuation similar to Mukesh Ambani’s recently listed non-banking financial company (NBFC), Jio Financial Services Ltd.

As part of the plan to go public, Tata Capital has nearly completed the merger of some of its key subsidiaries with itself, according to the two people. Tata Capital’s units include Tata Capital Financial Services Ltd, Tata Capital Housing Finance Ltd, Tata Cleantech Capital Ltd, Tata Securities Ltd, Tata Capital Pte. Ltd, Tata Capital Advisors Pte. Ltd and Tata Capital Plc. Tata Capital expects RBI’s approval of the ongoing mergers by the end of the year, as per Livemint report.

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Tata Capital's unlisted shares currently trade at ₹425 in the grey market, resulting in an approximate valuation of ₹1.5 trillion for the company. According to sources in the grey market, these shares reached a historic high of ₹560 just a few weeks ago.