Tata Capital IPO / Investors will have fun, Tata Capital's IPO will soon come in the market

Amid a strong rally in the Indian stock market, Tata Capital IPO has received SEBI's approval. This IPO can be worth Rs 17,200 crore. The public issue of this NBFC company of Tata Sons can come in the first week of July, which can become India's largest IPO.

Tata Capital IPO: The Indian stock market witnessed a tremendous rise on the last trading day. The Sensex jumped more than 1,000 points, creating an atmosphere of enthusiasm in the market. Amidst this positive trend, an important news has also come out for the IPO market. Tata Capital, the country's leading non-banking financial company (NBFC), has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

Confidential draft gets green signal

According to the Economic Times report, Tata Capital had confidentially filed its draft red herring prospectus (DRHP) with SEBI on April 5. Now after SEBI's approval, the path to the company's much-awaited listing has become more clear. Tata Capital is expected to publicly file the updated DRHP in the first week of July and will then submit the final red herring prospectus (RHP).

Big IPO of Rs 17,200 crore

Tata Capital's proposed IPO could be worth up to Rs 17,200 crore, making it one of the largest public issues ever in the Indian financial services sector. The issue will come in the form of fresh shares as well as an offer for sale (OFS) by Tata Sons. Tata Sons currently holds a 93% stake in Tata Capital.

RBI timeline and valuation

The Reserve Bank of India (RBI) has classified both Tata Capital and Tata Sons as 'upper layer' NBFCs. As per this classification, these companies are mandated to be listed on the stock market by September 2025. The rule comes with strict regulatory oversight and a timeline of three years in which listing has been made mandatory.

According to a Bloomberg report, Tata Group is targeting a valuation of up to $11 billion (about Rs 91,000 crore) for this IPO. If everything goes as planned, it could become the biggest Indian IPO of 2025.

Sign of market confidence

The listing of Tata Capital and SEBI's approval for it comes at a time when foreign and domestic investors' confidence in the Indian stock market has increased. The recent rally in the Sensex and the upcoming big IPOs are indicating the stability of the Indian economy and the depth of the market.