Tata Capital is set to move forward with the $ 2 billion starting public offering (over £ 17,000) only after securing the final approval of the National Law on Laws of the Company (NCLT) to merge Tata Motors’ finances with the company, according to sources.
The NCLT decision is expected by the end of the FY25, added.
Business today was unable to independently confirm development.
Tata Capital, classified as a non-banking finance company (NBFC) from the Reserve Bank of India (RBI), has already received the approval of the board to continue with the IPO.
The offer will include 2.3 equity shares, which covers a fresh issue and an offer of sales from selected existing shareholders, according to stock market disclosures. In addition to IPO, Tata Capital plans a problem with the rights to strengthen its financial position before the list.
If successful, this will be one of the largest IPOs in India’s financial sector and the second major debut on Tata Group’s public market in recent years, following the November 2023 tech list.
The IPO is aligned with the regulatory requirements, as the RBI requires that the upper layers NBFC must specify them within three years of their classification. Tata Capital was designated as the NBFC upper layer in September 2022.
HDB Financial Services, another top layer NBFC owned by HDFC Bank, is also preparing for IPOs and submitting its draft trends in October to raise £ 12,500.
The law firm Kiril Amarhand Mangaldas and the investment bank Kotak Machindra Capital are appointed as IPO Capital advisors. However, the draft red herring (DRHP) will only be submitted to Sebi after the NCLT clears the merger, according to a bird report.
During the call for Tata Motors’ Q3, the Baladzi Group Baladzi confirmed that Tata Motors’ finance creditors’ meeting was over. “The final orders (are) hammers from the NCLT and we expect closure for this by the end of this financial year,” he said.
The India Competition Commission (FCI) approved the proposed merger in September 2023. In June 2024, Tata Capital boards, Tata Motors Finance and Tata Motors approved the merger within the NCLT Arrangement Scheme. Post-story, Tata Capital will issue shareholders ‘shareholders of Tata Motors’ shareholders, giving Tata Motors 4.7% of the shared entity shares.
Tata Capital is primarily owned by Tata sons, which has 92.83% of the shares in the company.
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