Tata Capital's Rs 17,000-Crore IPO Set to Open on October 6

Strategic Insights -

The Tata Capital, the financial services arm of Tata Group, is poised to launch its Rs 17,000-crore initial public offering (IPO) on October 6, setting the stage for the country's largest public offering since Hyundai Motor India's Rs 27,870 crore issue last year. The IPO, which will open for anchor investors on October 3, is expected to close on October 8, with Tata Capital issuing up to 210 million fresh equity shares and existing shareholders offloading up to 265.8 million shares. The funds from the fresh issue will be used to strengthen the company's tier-I capital and support future lending growth.

Key Takeaways:

  • Tata Capital's Rs 17,000-crore IPO will be the country's largest public offering since Hyundai Motor India's Rs 27,870 crore issue last year.
  • The IPO will open for subscription on October 6 and close on October 8, with anchor investors being invited on October 3.
  • Tata Capital will issue up to 210 million fresh equity shares and existing shareholders will offload up to 265.8 million shares.
  • The funds from the issue will be used to strengthen the company's tier-I capital and support future lending growth.
  • The Tata Group, led by Tata Sons, will maintain a dominant stake in the company post-IPO, with International Finance Corporation and group entities also holding significant stakes.
  • The Reserve Bank of India had directed large non-banking finance companies (NBFCs) like Tata Capital to list their shares by September to bring greater transparency and reduce risks in the system.
  • Kotak Mahindra Capital, Citi, Axis Capital, JP Morgan, HSBC Securities, ICICI Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank are the book-running lead managers to the issue.

Statistics:

  • Rs 17,000 crore: The size of Tata Capital's IPO.
  • Rs 27,870 crore: The size of Hyundai Motor India's IPO, the country's largest public offering last year.
  • 210 million: The number of fresh equity shares Tata Capital will issue.
  • 265.8 million: The number of shares existing shareholders will offload.
  • 4: The number of book-running lead managers on the Tata Capital IPO.
  • 16: The number of book-running lead managers included in the IPO, excluding the other 12 listed.

Sources:

  • Tata Capital's red herring prospectus
  • "Reserve Bank of India's directions to NBFCs"
  • "Kotak Mahindra Capital, Citi, Axis Capital, JP Morgan, HSBC Securities, ICICI Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank are book-running lead managers to the issue."