02 July 2025
The board of Tata Capital Ltd (TCL), a financial services firm under the Tata group, has approved a rights issue worth ₹1,752 crore in anticipation of its upcoming initial public offering (IPO), which is expected to take place by September, according to a stock exchange filing from the company on Thursday.
Tata Sons Ltd, the holding company of the Tata group, is expected to subscribe to ₹1,630 crore of this rights issue, as per sources familiar with the matter. This capital infusion is in preparation for Tata Capital's $2 billion IPO, which is anticipated to be one of the largest listings in the Indian financial sector this year.
During the same board meeting, a proposal was also approved to raise up to ₹30,000 crore through various debt instruments, including secured, unsecured, subordinated, perpetual, or market-linked redeemable non-convertible debentures, as well as green bonds. The debt will be issued in one or more tranches on a private placement basis, and the company indicated that the proceeds from this issuance will be utilized for on-lending purposes.
Tata Sons, which holds a 93 percent stake in Tata Capital, had previously subscribed to the company's last rights issue in March, contributing ₹1,400 crore out of a total of ₹1,504 crore raised during that round. The remaining stake in Tata Capital is held by Tata Investment Corporation Ltd, the TCL Employee Welfare Trust, and other minority investors.
The board of Tata Capital Ltd (TCL), a financial services firm under the Tata group, has approved a rights issue worth ₹1,752 crore in anticipation of its upcoming initial public offering (IPO), which is expected to take place by September, according to a stock exchange filing from the company on Thursday.
Tata Sons Ltd, the holding company of the Tata group, is expected to subscribe to ₹1,630 crore of this rights issue, as per sources familiar with the matter. This capital infusion is in preparation for Tata Capital's $2 billion IPO, which is anticipated to be one of the largest listings in the Indian financial sector this year.
During the same board meeting, a proposal was also approved to raise up to ₹30,000 crore through various debt instruments, including secured, unsecured, subordinated, perpetual, or market-linked redeemable non-convertible debentures, as well as green bonds. The debt will be issued in one or more tranches on a private placement basis, and the company indicated that the proceeds from this issuance will be utilized for on-lending purposes.
Tata Sons, which holds a 93 percent stake in Tata Capital, had previously subscribed to the company's last rights issue in March, contributing ₹1,400 crore out of a total of ₹1,504 crore raised during that round. The remaining stake in Tata Capital is held by Tata Investment Corporation Ltd, the TCL Employee Welfare Trust, and other minority investors.
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