Tata Capital, Boat opt for confidential IPO filing route, submit DRHPs
Reports estimate Tata Capital's IPO size at approximately $2 billion, while Boat's could exceed $250 million
 "Tata Capital, Boat opt for confidential IPO filing route, submit DRHPs")
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 the 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 ₹10 each) and an offer-for-sale by existing shareholders.
Additionally, the company aims to raise ₹1,504 crore through a rights issue, which will be fully subscribed by its 93 per cent owner, Tata Sons. The listing aligns with Reserve Bank of India (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. Last month, edtech firm Physics Wallah joined the list with its DRHP submission. Indira IVF also pursued this route, but later withdrew its filing after Sebi reportedly raised concerns over a Bollywood biopic about its founder, Ajay Murdia.
Introduced in 2022, the confidential filing mechanism allows companies to keep DRHPs private until listing plans are finalised. Tata Play pioneered this route, but ultimately abandoned its IPO. Similarly, SoftBank-backed Oyo filed confidentially in 2023, but has yet to proceed. In April 2024, food delivery giant Swiggy opted for this pre-filing path. So far, only Swiggy and Vishal Mega Mart have successfully completed IPOs after confidential filings.