Tata Capital is the financial services arm of the Tata Group. It has secured board approval for the public offer. The issue will be a mix of fresh issue of 23 crore shares and an offer for sale (OFS) by existing shareholders. However, valuation and pricing details are not open to the public. Analysts are expecting that this can be one of the largest financial sector IPOs in India.
The listing of the IPO aligns with the Reserve Bank of India’s (RBI) directive, requiring Tata Capital Financial Services—a subsidiary of Tata Capital—to go public by September 2025. The RBI designated the subsidiary as an Upper Layer Non-Banking Financial Company (NBFC) in 2022, triggering the regulatory requirement.
Tata Capital IPO – Structure and Capital Planning
Tata Capital’s board has also approved an INR 1,504 crore rights issue, with February 25, 2025, set as the record date. The proceeds from the rights issue will enhance financial stability and strengthen the capital base.
Tata Sons, the holding company of the Tata Group, holds a major 93% stake in Tata Capital. After the IPO, Tata Sons will retain significant control over the company. Tata Investment Corporation also holds approximately 2% of the NBFC arm.
A Rare Public Offering from the Tata Group
Tata Capital IPO marks only the second listing of a Tata Group company in two decades, following Tata Technologies. The company provides a wide array of services, its product portfolio includes: financial services, retail & corporate lending, investment banking, and wealth management. The company is managing a massive asset of INR 1.58 lakh crore as of March 2024. The IPO may benefit from the rising credit demand caused by industry expansion.
Market Sentiment and Outlook
Tata Investments’ shares rally 8% following the IPO announcement. Research analysts expect that the IPO will unlock shareholder value, and support Tata Capital’s long-term growth.
Tata Capital IPO size, pricing and schedule will be disclosed in the coming months, several regulatory approvals are still pending. Tata Technologies IPO was the most recent IPO from the Tata Group. This multibagger IPO made its stock market debut on 30 November 2023 and delivered 162.60% returns on listing day.
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