Tata Sons eyes 2025 IPO for NBFC arm

Board expansion, merger with units set path for Tata Capital IPO

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MUMBAI : Tata Capital Ltd is restructuring its operations and expanding its board as part of the Tata group’s plan to take the non-bank lender public, two people with direct knowledge of the matter said.

“The group is targeting an IPO (for Tata Capital) in 2025. The board has been expanded, and mergers of some of the group firms under Tata Capital have been done as a part of the IPO plan," one of the two people said on condition of anonymity.

The conglomerate is seeking a valuation similar to Mukesh Ambani’s recently listed non-banking financial company (NBFC), Jio Financial Services Ltd.

“Currently, it is a work in progress, with the IPO process to begin in March 2024 with the appointment of investment bankers," said the second person, also on condition of anonymity.

The Reserve Bank of India (RBI) in September 2022 classified both Tata Capital and parent Tata Sons Ltd among the 16 ‘upper-layer’ NBFCs, requiring them to go public within three years from the date of the categorization. In Tata Capital’s case, the deadline is September 2025.

“We will comply with RBI guidelines," said Rajiv Sabharwal, the managing director of Tata Capital.