Tata Capital gets Board nod for IPO with fresh issue and OFS

Tata Capital IPO: The Board of Directors of Tata Capital Ltd has approved plans for an initial public offer. The initial share sale will consist of a fresh issuance of 23 crore equity shares and an offer for sale component (OFS), according to an exchange filing on the BSE.

The Board also gave the green light to the rights issue of up to ₹1,500 crore to the existing shareholders. The record date has been fixed as February 25.

According to the Reserve Bank of India's (RBI) guidelines, the Tata Group's financial services arm must list its shares by September 2025 as part of the "upper layer" non-banking financial companies (NBFCs) regulations.

According to Crisil Ratings, Tata Sons owns 92.83% of Tata Capital's shares, and most of the remaining shares are held by other Tata group firms as of March 31, 2024.

"Tata Sons also has personnel from its senior management on TCL's board. Tata Sons has infused capital of Rs 6,097 crore in TCL in the last five fiscals, of which Rs 2,500 crore was infused in fiscal 2019, Rs 1,000 crore in fiscal 2020, Rs 594 crore in fiscal 2023 and Rs 2003 crore during fiscal 2024, indicating the intent of the group to step up its focus on the lending business," the report said.

Tata Capital Ltd (TCL), the financial services company of the Tata Group, is a subsidiary of Tata Sons Pvt Ltd and operates as an NBFC.

Tata Capital and its subsidiaries provide services and products in the financial services sector and operate across various business areas such as commercial finance, wealth services, consumer loans and the distribution and marketing of Tata Cards.

Tata Investment share price rises

The market capitalisation of the company stands at ₹31,460.16 crore.