Tata Investment Corporation zooms 12% on Tata Capital IPO buzz; all you need to know

Tata Capital is a subsidiary of Tata Sons, and Tata Investment Corporation, as per publicly available information, is one of Tata Sons' largest shareholders.

Tata Capital is a non-banking financial services (NBFC) firm and a subsidiary of the business group's principal investment holding company, Tata Sons.

As regards Tata Capital IPO, the report said, "Work has begun on the proposed initial public offering. 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 over ₹15,000 crore.

"Law firm Cyril Amarchand Mangaldas and investment bank Kotak Mahindra Capital have been roped in as advisors for now," the report further said.

In October, the Reserve Bank of India (RBI) approved the merger of Tata Capital, an unlisted entity, with Tata Motors Finance (TMFL), paving the way for the formation of India’s 12th largest non-banking finance company.

The RBI sent its “no-objection” to both companies earlier this month, according to the companies’ regulatory filings.

Tata Motors shares were trading nearly 0.8% higher at ₹728 apiece on the BSE.

Meanwhile, Tata Technologies, an arm of Tata Motors, made a terrific debut in the secondary market last year. The stock was listed on the stock exchanges on November 30, 2023, with a massive premium of 140% against the issue price of ₹500.

The public issue had a price band of ₹475-₹500 per share. Tata Technologies' public issue was entirely an offer for sale (OFS) of 6.08 crore equity shares.

The public issue was overall subscribed 69.43 times.