Ahead of IPO Tata Capital Board Approves ₹1,752 Crore Rights Issue

Tata Capital Ltd's board has approved a rights issue worth ₹1,752 crore as the company prepares for its initial public offering (IPO), targeted for September. Tata Sons, the parent company of the Tata Group, is anticipated to contribute around ₹1,630 crore to this issue. 

This move follows a previous rights issue in March, where Tata Sons had infused ₹1,400 crore out of a total of ₹1,504 crore. The fresh capital aims to strengthen the company's financial base ahead of the upcoming IPO.

IPO Readiness and Regulatory Compliance

Tata Capital is set to launch a $2 billion IPO, among the largest in the Indian financial sector this year, having already received approval from the Securities and Exchange Board of India (SEBI). This public offering is being undertaken in line with the Reserve Bank of India's mandate that requires all top-tier non-banking financial companies (NBFCs) to be publicly listed by September 2025. 

Tata Sons currently owns 93% of Tata Capital, with the remaining shares held by Tata Investment Corporation Ltd, the TCL Employee Welfare Trust, and other minor stakeholders.

Fundraising Plans and Tata Sons’ NBFC Status

Alongside the rights issue, Tata Capital's board has also sanctioned raising up to ₹30,000 crore through various debt instruments, including secured and unsecured non-convertible debentures, perpetual bonds, and green bonds. These funds will be allocated for lending activities. 

In a related development, Tata Sons has repaid all its outstanding bank loans and has submitted an application to the RBI seeking removal from the list of upper-layer NBFCs. The central bank is currently reviewing this request.

Read more: Tata Group Becomes India’s Most Valuable Brand in 2025: Report!

Conclusion 

Tata Capital’s rights issue and debt raise signal strong preparations for its upcoming IPO, aligning with RBI norms and strengthening its financial position.

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