Shares of Tata Investment Corporation experienced a notable uptick, climbing 8.3% to reach ₹6,225 on the BSE. This surge came on the heels of Tata Capital’s announcement that its board has greenlit plans for an initial public offering (IPO).
Tata Capital’s IPO Details
Tata Capital, a prominent non-banking financial company under the $165 billion Tata Group umbrella, is set to issue 230 million new shares in its upcoming IPO. Existing shareholders are also expected to reduce their holdings through an offer-for-sale mechanism. This move aligns with the Reserve Bank of India’s mandate requiring “upper layer” non-banking financial companies to list publicly by September 2025.
Implications for Tata Investment Corporation
Tata Investment Corporation, serving as a holding entity with stakes in various Tata Group companies, stands to benefit indirectly from Tata Capital’s decision to go public. The IPO is anticipated to unlock value within Tata Group’s financial services sector, potentially enhancing the overall portfolio’s worth.
Historical Context and Future Prospects
This IPO marks Tata Group’s first public offering since Tata Technologies’ successful listing in November 2023. Established in 2007, Tata Capital offers a diverse range of loan products, with Tata Sons holding a 92.8% stake as of March 2024. In conjunction with the IPO approval, Tata Capital has also sanctioned a rights issue amounting to ₹15.04 billion ($173 million), further solidifying its financial foundation.
