Tata Capital IPO IFC Investment: The much-anticipated IPO of Tata Capital is likely to be launch in the first half of October. According to Tata Capital's
DRHP (Draft Red Herring Prospectus) filed in August, the IPO will comprise a fresh issue of up to 21 crore equity shares and an offer for sale (OFS) of up to 26.58 crore shares, totalling 47.58 crore shares. Under the OFS, Tata Caital's promoter Tata Sons will sell up to 23 crore shares, while International Finance Corporation (IFC) will offload up to 3.58 crore shares. At present, Tata Sons owns 88.6 per cent of Tata Capital while IFC holding 1.8 per cent. The International Finance Corporation (IFC), which is a member of the World Bank Group and the world's largest global development institution, is set gain massive from Tata Capital's public listing.
Tata Cleantech Capital: IFC Invested In 2011
IFC had partnered with Tata Capital in 2011 to set up Tata Cleantech Capital Ltd (TCCL), with the mandate to finance renewable and sustainable infrastructure projects. At the time, clean energy in India was still regarded as a subsidy-reliant sector.
Over the past decade, Tata Cleantech Capital has emerged as a key green financier, backing over 500 renewable projects across solar, wind, biomass, small hydro, water treatment and electric mobility.
According to Tata Capital's DRHP, the company's loan at the end of FY2025 was more than Rs 18,000 crore -- growing at a CAGR of nearly 32 per cent over the last two years.
After Tata Cleantech Capital's merger with Tata Capital, IFC now holds 7.16 crore shares or about 1.8 per cent in the NBFC (Tata Capital). Of this, IFC will offload 3.58 crore shares via IPO.
Tata Capital IPO: IFC Investment
IFC had entered at an adjusted price of around Rs 25 per share. IFC's overall investment is pegged at roughly Rs 179 crore.
At the rights issue price of Rs 343 per share in July, IFC's investment in Tata Capital is worth nearly Rs 2,458 crore, translating into a huge profit of about Rs 2,278 crore -- delivering nearly 13 times of the investment made in Tata Capital.
In July, Tata Capital had raised Rs 1,752 crore through a rights issue priced at Rs 343 per share.
Tata Capital IPO, if successful, will become India's largest IPO in the country's financial sector.
Tata Capital is floating its IPO to meet the RBI's listing mandate for upper-layer NBFCs. Under the RBI norms, the upper-layer NBFCs are required to mandatorily list shares within three years of classification. Tata Capital was classified as an upper-layer NBFC in September 2022 by RBI.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
