Tata Capital Gears Up for $2 Billion IPO After NCLT Approval

Tata Capital plans a $2 billion IPO pending NCLT approval of its merger with Tata Motors Finance. Valued around $11 billion, the IPO marks a crucial step for the upper-layer NBFC to comply with RBI mandates. Funds will also be raised through a rights issue, bolstering its financial position.

Tata Capital is poised to launch a $2 billion initial public offering (IPO) after receiving the go-ahead from the National Company Law Tribunal (NCLT) for a merger with Tata Motors Finance, insiders revealed. This IPO is expected to elevate the firm's valuation to approximately $11 billion.

The financial services titan has already secured board approval for the share sale, part of its strategic move to adhere to Reserve Bank of India's listing directives. The IPO will comprise a fresh issue of 2.3 crore equity shares and a sale offer by existing shareholders.

Additionally, Tata Capital plans to enhance its financial standing with a rights issue as it prepares for public listing. If successful, this IPO will be one of the largest in the Indian financial sector, following the Tata Group's recent debut of Tata Technologies.

(With inputs from agencies.)