Tata Capital has announced board approval for its Initial Public Offering (IPO), marking the first public listing by a Tata Group company since the successful debut of Tata Technologies in 2023. The proposed IPO will include a fresh issue of 23 crore equity shares and an Offer-for-Sale (OFS) by existing shareholders.
Additionally, Tata Capital’s board has sanctioned a rights issue worth up to Rs 1,504 crore for its existing shareholders. The move aligns with the Reserve Bank of India’s (RBI) mandate requiring ‘upper layer’ non-banking financial companies (NBFCs) to list within three years of notification, with a deadline set for September 2025. Notably, Tata Capital Financial Services, which merged with Tata Capital in January 2024, features on the RBI’s list.
Tata Capital, a subsidiary of Tata Sons—the principal investment holding company of the Tata Group—is a leading NBFC. As of 31st March, 2024, the company reported an Asset under Management (AUM) of Rs 158,479 crore, according to Crisil Ratings. Tata Sons held a 92.83 percent stake in Tata Capital, with the remaining shares owned by other Tata entities and trusts.
Crisil Ratings further highlighted Tata Sons’ capital infusion of Rs 6,097 crore into Tata Capital over the past five years, underscoring the group’s strategic emphasis on expanding its lending business. The infusions included Rs 2,500 crore in Financial Year (FY) 19, Rs 1,000 crore in FY20, Rs 594 crore in FY23 and Rs 2,003 crore in FY24.
Following the IPO announcement, Tata Investment Corporation’s shares surged by 8 percent, trading at Rs 6,218 apiece.
Tata Capital’s planned market debut followed the listing of Bajaj Housing Finance, another ‘upper layer’ NBFC, which saw a 135 percent premium over its issue price on its first trading day, 16th September, 2024.
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