Tata Capital & boAT Set for Listing After Filing Through Confidential Route Tata Capital and boAT take the confidential route to file papers with SEBI; Tata's financial services arm listing set to be largest in the Indian finance sector.
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Tata Capital, part of the Tata Group, has filed the necessary paperwork with the market regulator, the Securities and Exchange Board of India (SEBI). According to reports, the initial public offering is set to be valued at INR 15,000 crore, making it 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 becoming one of the largest in the country's financial landscape.
The IPO proceedings are being done through the confidential pre-filing route and will consist of the issuance of new shares and an offer for sale (OFS) component with Tata Sons that holds 93 per cent of the company.
The offering will consist of close to 2.3 crore equity shares, comprised of fresh issue and sale of shares by existing shareholders.
The 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 as 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.
One of India's leading consumer electronics brands, boAT having secured shareholder approval for its IPO earlier in Febrary, has filed its draft red herring perospertus (DRHP) via the confidential route.
The Warburg-Pincus-backed company aims to raise USD 300-500 million through the IPO, seeking a company valuation of nearly USD 1.5 billion.
boAT had earlier filed papers with SEBI in 2022 for its IPO, but it is reported that the plans came to a pause citing market conditions. The company also raised USD 60 million in private capital from investors such as Malabar Investments.
The confidential filing route was introduced in 2022, helping companies aiming to go public to keep the DRHPs secretive until the proceedings get finalised. Oyo had taken the same route in 2023, but its IPO plans have yet to materialize. Indira IVF had recently filed confidentially with SEBI, only to scrap its listing plans later amidst the Bollywood biopic based on the founder controversy and the company citing "various factors and commercial considerations" as the reason for the withdrawal.
