Tata Capital IPO To Be Bigger Than HDB Financial Services
Upper layer NBFCs are systemically important NBFCs identified by RBI through parametric analysis of certain quantitative and qualitative criteria
Mumbai: With Securities and Exchange Board of India's clearance to Tata Capital's confidential draft red herring prospectus for its initial public offering as per reports and likely IPO next month, almost all 15 upper layer NBFCs that RBI circular issued in Sept. 2023 made it mandatory to list before Sept. 30, 2025 will be achieved.
Upper layer NBFCs are systemically important NBFCs identified by RBI through parametric analysis of certain quantitative and qualitative criteria.
According to market sources Tata Capital's IPO may raise Rs 15,000 to Rs 17,000 crore with promoters Tata Sons diluting stake in the company. Tata Sons holds 92.83 per cent stake in Tata Capital.
As per reports before the Tata Capital IPO, Tata Capital Financial Services (TCFSL) along with Tata Cleantech Capital have merged into Tata Capital. Further, Tata Motors Finance( earlier owned by Tata Motors) has merged with Tata Capital effective May 8, 2025, following approval from the National Company Law Tribunal (NCLT).As a consideration of the merger of Tata Motors Finance into Tata Capital, Tata Capital will issue equity shares to the shareholders of Tata Motor Finance.
Among the 15 upper layer NBFCs as per RBI circular list those that were not listed included - HDB Financial Services, Tata Capital, Tata Sons, Bajaj Housing Finance, Piramal Capital and Housing Finance, Aditya Birla Finance were not listed.
Since then Bajaj Housing Finance has achieved listing through an IPO in 2024. Piramal Capital & Housing Finance was excluded from the updated RBI list of upper-layer NBFCs for mandatory listing due to ongoing business restructuring within the Piramal Group. The company is undergoing a merger with Piramal Enterprises to simplify its structure and meet listing requirements, according to reports.
Only Tata Sons, a core investment company in the list will be pending, awaiting RBI's call on Tata Sons application for voluntary surrender of NBFC license, which is under consideration by the RBI as per RBI's updated circular issued in January 2025.
HDB Financial Services is poised to list on July 2 after its IPO process get completed post public bidding from June 25-June 27.
