Tata Capital Announces Rs 15,000 Crore IPO: Can It Match Tata Tech’s Market Debut?

Tata Capital IPO Listing: The initial public offering (IPO) of Tata Group's non-banking finance company (NBFC) is set to make its debut on the Dalal Street next year. The public offering is valued at around Rs 15,000 crore. After Tata Technologies' stellar debut in 2023, Tata Capital's entry into the secondary market will mark the second major listing under the conglomerate's umbrella.

This will also make Tata Capital's IPO one of the largest in the domestic market, following those of Hyundai Motors India, LIC, Paytm and Coal India.

"Work has begun on the proposed initial public offer. This is to comply with RBI's norms for 'upper layer' NBFCs. No final call has been taken on the quantum, but the deal is expected to be a big-bang one in excess of Rs 15,000 crore," sources cited in a report by moneycontrol said.

As of now, law firm Cyril Amarchand Mangaldas and investment bank Kotak Mahindra Capital have already been brought on board as advisors. And, discussions to bring in other investment banks are also on the table.

Tata Capital provides various services under segments like commercial finance, consumer loans, wealth services and distribution.

While the buzz around Tata's NBFC IPO is well-present on the D-street as many are expecting a debut similar to that of Tata Technologies, skepticism remains large owing to the moderated outlook of the lending sector.

Tata Technologies' Stock Performance

While the company made a stellar triple-digit debut on the bourses (140 per cent), the stock price trajectory has remained largely subdued post-listing.

The share price has been down by over 25 per cent from its listing price. On year-to-date basis, the shares of Tata Technologies' have largely remained in the red territory, down by over 22 per cent on the National Stock Exchange.

The company's profit figure has also remained volatile in the past few quarters. During Q2FY25, Tata Technologies' recorded a profit of Rs 157 crore, down from Rs 162 crore in Q1FY25.