Tata Capital authorized the plans for an IPO on February 25. The plan would include both a new issue of 23 crore equity shares and an offer for sale by current shareholders.
According to the board’s decision, current owners will receive shares valued up to Rs 1,504 crore on a rights basis. Interestingly, following Tata Technologies’ successful listing in 2023, this would be the first initial public offering (IPO) by a Tata Group firm.
The Tata Group’s action complies with the RBI’s mandate that “upper layer” NBFCs list by September 2025, three years after being notified. The regulator’s list includes Tata Capital Financial Services, which merged with Tata Capital later in January 2024.
With a premium of 135% above the IPO issue price at the end of the trading session, Bajaj Housing Finance, another company on the RBI ‘upper layer list,’ made a spectacular market debut on September 16 and joined the upper circuit.
The business group’s main investment holding company, Tata Sons, is the parent company of Tata Capital, a non-banking financial services (NBFC) organization.
Crisil Ratings said in September that as of March 31, 2024, the company’s AUM was Rs 158,479 crore. As of March 31, 2024, Tata Sons directly controlled 92.83 percent of the equity shares of Tata Capital Limited, with other Tata group corporations and trusts holding the majority of the remaining interest.
According to the report issued by Crisil Ratings, “Tata Sons has infused capital of Rs 6,097 crore in Tata Capital Limited in the last five fiscals, of which Rs 2,500 crore was infused in fiscal 2019, Rs 1,000 crore in fiscal 2020, Rs 594 crore in fiscal 2023 and Rs 2003 crore during fiscal 2024, indicating the intent of the group to step up its focus on the lending business.”
Following Tata Capital’s statement, Tata Investment’s shares rose 8% to Rs 6,218 per share.
