Tata Capital Files $2 Billion IPO for Largest Offer in India's Financial Sector

Tata Capital, the financial services arm of Tata Group, has filed a confidential Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) for a $2 billion initial public offering (IPO), which is poised to be one of India's largest in the financial sector. The offering will consist of a fresh issue of 2.3 crore equity shares and an offer-for-sale by existing shareholders, primarily Tata Sons, which holds a 92.83% stake. This IPO is part of Tata Capital's compliance with Reserve Bank of India regulations requiring upper-layer non-banking finance companies (NBFCs) to list publicly within three years of their designation. The confidential filing route allows Tata Capital to limit the disclosure of sensitive information while preparing for market conditions. Analysts anticipate strong demand for such a high-profile offering despite recent market volatility. If successful, this IPO will mark the Tata Group's second public market entry following Tata Technologies' listing in 2023.