Tata Capital, the financial services arm of Tata Sons, and Imagine Marketing, the parent company of audio and wearable brand Boat, have submitted their draft red herring prospectuses (DRHPs) to the Securities and Exchange Board of India (Sebi) via the confidential filing route. Both companies announced this move through separate newspaper advertisements on Monday.
Under the confidential filing process, details of the initial public offerings (IPOs) remain undisclosed to the public. However, reports estimate Tata Capital's IPO size at approximately $2 billion, while Boat's could exceed $250 million.
Both offerings are expected to combine fresh equity issuance and secondary share sales.
In February, Tata Capital's board approved plans for an IPO and a rights issue. This IPO marks only the second public debut by a Tata Group company in nearly two decades, following Tata Technologies in 2023 and Tata Consultancy Services in 2004.
According to an earlier regulatory filing, Tata Capital's IPO will include a fresh issue of up to 230 million equity shares (face value of Rs 10 each) and an offer-for-sale by existing shareholders. Additionally, the company aims to raise Rs 1,504 crore through a rights issue, which will be fully subscribed by its 93 per cent owner, Tata Sons.
The listing aligns with RBI mandates requiring 'upper layer' non-banking financial companies (NBFCs) to go public by September. Boat, backed by Warburg Pincus, also secured shareholder approval for its IPO in February. This marks the company's second attempt at going public, having first filed a DRHP in 2022. To date, eight companies have utilised the confidential filing route for IPOs.
Samie Modak, Business Standard