Shares of Tata Investment Corporation (TICL) surged by 8% to ₹7,060.15 on December 12, 2024, on the BSE, following reports of Tata Capital preparing to launch a massive ₹15,000 crore initial public offering (IPO). Tata Capital, a subsidiary of Tata Sons and a flagship financial services arm of the Tata Group, is stepping into the public markets to comply with regulatory mandates for “upper layer” non-banking financial companies (NBFCs).
Tata Capital’s IPO Plans Underway
According to a report by Moneycontrol, Tata Group has commenced groundwork for Tata Capital’s IPO. While the exact quantum of the offering has not been finalized, it is expected to surpass ₹15,000 crore, making it one of the largest IPOs from the Tata Group in recent years. The law firm Cyril Amarchand Mangaldas and Kotak Mahindra Capital have been engaged as advisors for the IPO process.
This move aligns with the Reserve Bank of India’s (RBI) directive requiring all upper-layer NBFCs to list their shares by September 2025. The IPO is anticipated to hit the markets by September 2025, following the recent merger of Tata Capital with Tata Motors Finance (TMFL).
RBI Approval Paves the Way
In October 2024, the RBI approved the merger between Tata Capital and TMFL, creating India’s 12th largest NBFC. This merger, supported by the RBI’s “no-objection” certification, is a significant milestone for Tata Capital as it prepares for its public debut.
Tata Group’s IPO Momentum
The Tata Group has been actively exploring public listings for its subsidiaries. Last year, Tata Technologies, a subsidiary of Tata Motors, made a sensational debut in the stock market. Listed on November 30, 2023, at a 140% premium to its issue price of ₹500 per share, the IPO was subscribed 69.43 times, reflecting robust investor interest.
Notably, Tata Technologies’ IPO marked the Tata Group’s return to public markets after nearly two decades. The last IPO from the conglomerate was Tata Consultancy Services (TCS) in 2004.
What to Expect from Tata Capital IPO
Tata Capital’s IPO is poised to capture significant attention from investors, given its scale and the strong reputation of the Tata Group. The company’s strategic positioning as a financial services powerhouse and the favorable regulatory push make this offering a high-potential opportunity in the NBFC space.
As Tata Capital takes strides toward its IPO, the move reflects the Tata Group’s ambition to consolidate its leadership in the financial services sector. With a potential ₹15,000 crore offering, this IPO could be one of the most significant events in the Indian stock market in 2025. Investors are keenly watching as the iconic group sets the stage for another milestone in its illustrious history.
Disclaimer: This article is for informational purposes only. Readers are advised to conduct their due diligence before making any investment decisions.
