Tata Capital Board Approves IPO and Rs 1,504 Crore Rights Issue
Tata Capital gears up for a major stock market debut with a mix of fresh equity and offer-for-sale shares.
Tata Capital, a leading non-banking financial company (NBFC) under the Tata Group, has announced plans for an initial public offering (IPO) comprising a fresh issue of 23 crore equity shares along with an offer-for-sale by existing shareholders. Additionally, the company has approved a rights issue worth Rs 1,504 crore for existing shareholders.
Key Highlights of Tata Capital’s IPO Plan:
- IPO Structure: The public issue will include a mix of newly issued shares and an offer-for-sale by current stakeholders.
- Significance: This will be the first IPO by a Tata Group company since Tata Technologies’ successful listing in 2023.
- Regulatory Compliance: The listing aligns with the Reserve Bank of India’s (RBI) mandate requiring ‘upper layer’ NBFCs to go public by September 2025.
Tata Capital’s Growth and Market Position
Established in 2007, Tata Capital offers a broad range of financial services, including home, personal, and business loans. As of March 31, 2024, the company’s assets under management (AUM) stood at Rs 1,58,479 crore, according to a report by Crisil Ratings. Tata Sons holds a 92.83% stake in Tata Capital, with the remaining shares owned by other Tata group entities and trusts.
Over the past five years, Tata Sons has infused Rs 6,097 crore into Tata Capital to strengthen its financial position, reflecting the group’s long-term commitment to expanding its lending business. Recent capital infusions include Rs 2,500 crore in 2019, Rs 1,000 crore in 2020, Rs 594 crore in 2023, and Rs 2,003 crore in 2024.
Impact on Market and Investors
Following the IPO announcement, shares of Tata Investment surged 8%, trading at Rs 6,218 per share. The move signals strong investor confidence in Tata Capital’s growth potential and its upcoming market debut.
With this IPO, Tata Capital is set to become a publicly traded entity, further solidifying its position in India’s financial sector. Investors and market watchers will be keenly observing the developments as Tata Capital prepares for its listing.
