India’s financial markets gear up for a major listing as the Securities and Exchange Board of India (SEBI) approves Tata Capital’s confidential draft red herring prospectus (DRHP) for its ₹17,200 crore initial public offering. The move brings Tata Capital, a major non-banking financial company under Tata Sons, closer to launching one of India’s largest IPOs this year.
The Securities and Exchange Board of India (SEBI), the country’s capital markets regulator, has approved the draft red herring prospectus (DRHP) of Tata Capital Ltd., paving the way for its much-anticipated ₹17,200 crore initial public offering (IPO). Tata Capital, headquartered in Mumbai, is a key non-banking financial company (NBFC) under Tata Sons, one of India’s largest and oldest conglomerates.
According to a report by the Economic Times, the DRHP was submitted through SEBI’s confidential filing route on April 5, and the latest approval indicates the public issue is nearing its launch stage. Following this clearance, Tata Capital is expected to file an updated DRHP on SEBI’s public platform before proceeding to submit the final red herring prospectus (RHP).
The IPO will include a fresh issue of shares and an offer for sale (OFS) by Tata Sons, which currently owns a 93% stake in the NBFC. The public issue is expected to value Tata Capital at around $11 billion, potentially making it India’s largest IPO of the year, according to Bloomberg.
Tata Capital’s listing also complies with the Reserve Bank of India’s (RBI) upper-layer NBFC classification, which mandates public listing by September 2025 for tighter regulatory oversight and transparency. Both Tata Sons and Tata Capital are subject to this mandate under RBI’s framework for large NBFCs.
The IPO is being closely watched not just for its size but also for what it represents—the strategic scaling of Tata Group’s financial services arm and its alignment with regulatory expectations amid India’s evolving capital markets landscape.