Tata Group’s financial services arm, Tata Capital, is preparing to make its stock market debut with the launch of its initial public offering (IPO). The company’s board has approved plans for the public offering.
This will be Tata Group’s second IPO in less than two years, following the successful listing of Tata Technologies in November last year
Tata Group’s financial services arm, Tata Capital, is preparing to make its stock market debut with the launch of its initial public offering (IPO). The company’s board has approved plans for the public offering.
The company will issue 23 crore new shares, while some existing shareholders will exit through the offer for sale (OFS) route, according to the Reuters report.
This will be Tata Group’s second IPO in less than two years, following the successful listing of Tata Technologies in November last year.
In September 2022, the Reserve Bank of India (RBI) designated Tata Capital Financial Services as an upper-layer systematically important NBFC, requiring it to implement stricter regulatory frameworks and complete listing within three years.
Tata Capital’s board has also approved a rights issue worth up to Rs 1,504 crore for existing shareholders. It has set the record date for the rights issue as Tuesday, February 25, 2025. However, the company has yet to announce the issue price and the entitlement ratio for the rights issue. The move will help the company strengthen its capital base ahead of the public listing.
Tata Sons, the group’s principal investment holding company, is the largest shareholder in Tata Capital, with a 92.8% stake as of March 2024. The IPO will reduce its ownership, but the extent of dilution will depend on the final structure of the offering. Other Tata Group companies including Tata Investment Corporation, Tata Consumer Products, Tata Chemicals, Tata Motors and Tata Power collectively own a 2.5% stake in the company. Shares of Tata Investment surged 10% following the announcement of Tata Capital's IPO.
Established in 2007, Tata Capital serves as the holding company for the group’s three lending businesses – Tata Capital Financial Services, Tata Capital Housing Finance, and Tata Cleantech Capital, including three investment and advisory businesses – Tata Securities, Tata Capital Singapore and its private equity division. It offers a wide range of products and services in the financial services sector. It operates across various business areas including Commercial Finance, Consumer Loans, Wealth Services and the distribution and marketing of Tata Cards.