Tata Capital has filed for an initial public offering (IPO), according to draft papers submitted on Monday. The Tata Sons-backed financial services company aims to issue up to 210 million new shares, while existing shareholders will offload up to 265.8 million shares.
Tata Sons and IFC to offload stake
As part of the offer for sale, Tata Sons will sell up to 230 million shares, while the International Finance Corporation (IFC) plans to divest up to 35.8 million shares. This move marks one of the most anticipated IPOs in India’s financial sector, given Tata Capital’s market presence and the backing of the Tata Group.
Use of proceeds and lead managers
Proceeds from the fresh issue will be utilized to meet Tata Capital’s future capital requirements, including onward lending. There are 10 lead managers to the issue and some of the key names include the likes of Kotak Mahindra Capital, BNP Paribas, and Citigroup Global Markets.