Tata Capital, the financial services company of the Tata Group, will file draft papers for the IPO after getting approval for the merger of Tata Motors Finance from NCLT (National Company Law Tribunal). According to media reports, the company is awaiting the final order of NCLT for this. The size of Tata Capital’s initial public offering i.e. IPO will be around $ 2 billion i.e. more than Rs 17 thousand crores. On the basis of this size, the valuation of the company can be around $ 11 billion i.e. Rs 95,864 crore. According to reports, the final order from NCLT on the merger of Tata Motors Finance can be received by the end of the financial year 2024-25. In June 2024, the boards of Tata Capital, Tata Motors Finance and Tata Motors approved the merger of Tata Motors Finance and Tata Capital through the NCLT Scheme of Arrangement. CCI approved the merger in September 2024. Under the merger, Tata Capital will issue its equity shares to the shareholders of Tata Motors Finance. Due to this, Tata Motors will have a 4.7% stake in the newly emerging entity. The Competition Commission of India (CCI) approved this merger in September 2024. Tata Sons has a 92.83% stake in Tata Capital Tata Sons is the holding company of Tata Capital. It has a 92.83% stake in Tata Capital. Tata Capital has got the status of Upper Layer NBFC (Non Banking Financial Company) from the Reserve Bank of India (RBI). Tata Capital joined NBFC in September 2022 As per the order of RBI, it is necessary for the upper layer NBFC to be listed in the stock markets within 3 years of getting this recognition. Tata Capital qualified in the upper layer NBFC in September 2022. The company will issue 2.3 crore new shares under the IPO Tata Capital has already received its board’s approval for the IPO. The company will issue 2.3 crore new shares under the IPO. Apart from this, there will also be an Offer for Sale (OFS) from some existing shareholders. Tata Capital has also announced to raise funds through a rights issue to further strengthen its financial position before the public listing. Earlier, the listing of Tata Technologies of Tata Group was done in November 2023.
