Tata Capital is expected to move forward with its $ 2 billion (more than 17,000 crores), the initial public offer (IPO) only after obtaining the final approval of the National Court of Companies (NCLT) for the merger of Tata Motors finances with the company, said PTI citing sources.
The NCLT decision is expected by the end of fiscal year 25, he added.
Business today could not verify the development independently.
Tata Capital, classified as a non -banking financing company (NBFC) of the Superior Reserve by the Reserve Bank of India (RBI), has already received the approval of the Board of Directors to make the Introduction on the Stock Exchange.
The offer will include actions of 2.3 crosses, including a new problem and a sales offer (OFS) by certain existing shareholders, in accordance with the stock exchange. In addition to the IPO, Tata Capital also provides for a rights problem to strengthen its financial situation before the list.
In the event of success, it will be one of the largest IPOs in India’s financial sector and the second major start of the TATA group’s public market in recent years, following the TATA technology list in November 2023.
The IPO is aligned with regulatory requirements, because RBI obliges that the upper layer NBFC must list within three years of their classification. Tata Capital was designated as NBFC of upper layers in September 2022.
HDB Financial Services, another NBFC superior to the bank belonging to HDFC Bank, is also preparing for an IPO and filed its documents in October to raise 12,500 crore.
The law firm Cyril Amarchand Mangaldas and the investment bank Kotak Mahindra Capital were appointed advisers for the IPO of Tata Capital. However, the Red Herring Prospectus Project (DRHP) will only be submitted to SEBI after the NCLT has erased the merger, according to the PTI report.
During the call for Tata Motors’s profits, the CFO PB Balaji group confirmed that the meeting of creditors for Tata Motors Finance had been completed. “The final orders (are) expected from the NCLT, and we expect a closure at the end of this exercise,” he said.
The Competition of Competition of India (CCI) approved the merger proposed in September 2023. In June 2024, the boards of directors of Tata Capital, Tata Motors Finance and Tata Motors approved the merger within the framework of an NCLT arrangement program. Post-merger, Tata Capital will issue the shares of the shareholders of Tata Motors Finance, giving Tata Motors a participation of 4.7% in the merged entity.
Tata Capital mainly belongs to Tata Sons, which has a participation of 92.83% in the company.
