The October 2021 SBR requires NBFCs in UL to mandatorily list within 3 years of identification as NBFC-UL
The Board of Directors of Tata Capital Ltd (TCL) will be meeting on Tuesday to consider a proposal for raising funds by way of issue of equity shares on a rights basis amid plans for an initial public offering (IPO).
This comes even as TCL and its parent – Tata Sons Pvt Ltd – are required to list their equity shares on the exchanges as per RBI’s October 2021 scale-based regulation (SBR) for non-banking finance companies (NBFCs) in the upper layer (UL).
TCL operates as a non-deposit taking NBFC-investment credit company (NBFC–ICC). Tata Sons is classified as a core investment company. The latter has been trying to get itself de-registered as a NBFC so that it does not have to get listed.
The October 2021 SBR requires NBFCs in UL to mandatorily list within 3 years of identification as NBFC-UL.
“Disclosure requirements shall be put in place on the same lines as applicable to a listed company even before the actual listing, as per Board approved policy of the NBFC,” per the SBR.
Last month, TCL informed the exchanges that its Board of Directors vide its resolution passed by circulation on January 27, 2025, approved alteration to the Memorandum of Association of the Company and adoption of new set of Articles of Association primarily to align with the provisions of the Companies Act, 2013.
This is subject to the approval of the shareholders through a postal ballot and other requisite approvals.
TCL’s product and service offerings include personal loans, home loans, business loans, other consumer loans, loan against property, commercial and SME Finance, cleantech finance, institutional distribution, private equity, wealth products distribution, leasing solutions and Tata Cards.
TCL reported a 15 per cent year-on-year decline in third quarter standalone net profit at ₹566.42 crore (₹664.35 crore in the year ago quarter).