Tata Capital plans to launch IPO after NCLT approval on merger with Tata Motors Finance, while Ather Energy has converted preference shares to equity shares ahead of its IPO.
Tata Capital awaits NCLT nod for merger with Tata Motors Finance
Financial services company Tata Capital is planning to launch its $2-billion (over Rs 17,000 crore) initial public offering (IPO) only after the National Company Law Tribunal (NCLT) approves its merger with Tata Motors Finance, according to a PTI report.
The offering will include 2.3 crore equity shares, comprising a fresh issue and an offer for sale by select existing shareholders. Tata Capital is also planning a rights issue ahead of the listing. The IPO, if it goes through, will be one of the largest in India’s financial sector and the Tata Group’s second major listing in just over a year after Tata Technologies’s public market debut in November 2023.
The merger between Tata Motors Finance and Tata Capital was cleared by the Competition Commission of India in 2024. The Board of Directors of Tata Motors Limited, Tata Capital Limited, and Tata Motors Finance Ltd approved the merger through an NCLT scheme of arrangement. After the merger, Tata Motors will hold a 4.7% stake in the merged entity.
Ather energy converts preference shares to equity shares ahead of IPO
Bangalore-based electric two-wheeler maker Ather energy has converted its outstanding compulsory convertible preference shares (CCPS) into equity shares, ahead of its expected IPO in April. The firm’s board passed a resolution recently to convert 1.73 Lakh outstanding CCPS into 24 crore fully paid-up equity shares each having a face value of Re 1.
The equity shares will be allotted to Hero MotoCorp Limited, Internet Fund III, Caladium Investment Pte Ltd, and Innoven Capital India Fund, among other shareholders. SEBI regulations require all CCPS to be converted into equity shares before filing for an IPO.
Ather’s public issue will comprise a fresh issuance of shares worth Rs 3,100 crore and an offer for sale of up to 2.2 crore shares. It is aiming at a valuation of around $2.5 billion for its IPO and plans to raise Rs 620 crore through a pre-IPO placement.
The company plans to use the IPO proceeds to support its R&D, marketing and production initiatives, infrastructure, and other corporate uses.
