Tata Capital & Ather Plan IPO: Knowledge Realty to be Largest REIT Listing Funds raised through IPOs in India contributed to more than 30 per cent of global IPO volumes, said Redseer, adding that the country is aiming for USD 13 trillion in market capitalization by 2030.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
India is expected to record a 6.6 per cent growth in 2025, with a 6.8 per cent next year, mainly driven by strong private consumption and investment, said the United Nations (UN) in a forecast report earlier this year. The economy is set to benefit from eased opportunities for the private investor in an evolving IPO (Initial Public Offering) landscape, that saw over 330 listings in 2024.
Funds raised through IPOs in India contributed to more than 30 per cent of global IPO volumes, said Redseer, adding that the country is aiming for USD 13 trillion in market capitalization by 2030.
Here we take a look at the newest events in the bustling Indian IPO sector:
Knowledge Realty Trust
Knowledge Realty Trust, an Real Estate Investment Trust (REIT) that allows investors to buy value in property, has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) in what is measured to be a listing valued at INR 6,200 Crore (USD 711 million). The fundraise is poised to be India's largest REIT listing.
Knowledge Realty is the biggest of its kind in the country by gross asset value (GAV), with a net operating income close to INR 2,900 crore in the previous fiscal, according to the DRHP. Other listed REITs in the country include Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust.
The Blackstone Inc. and Sattva Developers backed REIT has its operations spread across major Indian cities such as Bengaluru, Mumbai, Hyderabad, and Chennai.
Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, and BofA Securities India, among other institutions, will be involved in the share of sales.
Tata Capital
Tata Capital is poised to move ahead with its USD 2 billion (INR 17,000 Crore) IPO and is awaiting final approval from the National Company Law Tribunal (NCLT) regarding the merger of Tata Motors Finance with the company, as reported by PTI citing sources, with the decision expected by the end of FY25.
The IPO is also set to be Tata Group's second major listing in recent years, after Tata Technologies hit the market in 2023. Tata Capital IPO is also on its way to become one of the largest in the country's financial landscape.
The listing is set to include 2.3 crore equity shares, consisting of a fresh issue and an offer for sale (OFS) component by a few existing shareholders. According to reports, Tata Capital is also planning a rights issue to improve its financials before hitting the bourses.
Reserve Bank of India (RBI) mandates that all upper-layer non-banking financial institutions (NBFCs) must get listed before completing three years after classification. Tata's financial arm was classified an upper-layer NBFC in 2022.
The IPO aligns with regulatory requirements, as RBI mandates that upper-layer NBFCs must list within three years of their classification. Tata Capital was designated as an upper-layer NBFC in September 2022.
HDB Financial Services, along with Avanse Financial, are also poised to add to the total USD 9 billion fundraise through IPOs in the country through the financial sector, as reported by Mahindra Capital Company (KMCC).
According to the PTI report, Cyril Amarchand Mangaldas and Kotak Mahindra Capital will play
as the advisors to the listing and that Tata will only file its DRHP after the pending NCLT approval.
Ather Energy
One of the largest electric two-wheeler manufacturers in the country, Ather Energy is moving closer to its IPO, after a recent development revealed that the company converted its compulsory convertible preference shares (CCPS) into equity, as reported by the Financial Express.
The development indicates that the electric vehicle (EV) maker is gearing towards an April listing date.
The listing will comprise a fresh issue of INR 3,100 crore worth of equity share sale, with an OFS component of 2.2 shares by existing promoters and share-selling investors.
The report also said that the funds raised will most likely be used towards an EV manufacturing plant and to pay existing debt.
