Tata Capital IPO: Tata Investment Corporation surges 10%; key things you need to know

Tata Capital said that the board of directors of the company has approved the initial public offering (IPO) of the equity shares of face value of ₹10 each comprising the following:

• a fresh issue of up to 23,00,00,000 (twenty three crore) equity shares; and

• an offer for sale (OFS) of equity shares by certain existing and eligible shareholders of the company, subject to market conditions, receipt of applicable approvals, regulatory clearances, and other relevant considerations.

Besides IPO approval, the company's board also gave its nod for the issuance of equity shares of the face value of ₹10 each of the company for an aggregate amount not exceeding ₹1,504 crore on a rights basis to the existing equity shareholders of the company as of the record date, i.e., February 25, 2025.

In December, the reports of the Tata Capital IPO first surfaced.

As regards the 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."

In October 2024, 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 in October, according to the companies’ regulatory filings.

About Tata Capital

Tata Capital is the flagship financial services company of the Tata Group. It is a subsidiary of Tata Sons and is carrying on business as a non-banking financial company.

Tata Capital and its subsidiaries are engaged in providing/supplying a wide array of services/products in the financial services sector and operate across various areas of business: Commercial Finance, Consumer Loans, Wealth Services, and the distribution and marketing of Tata Cards.

Recent IPOs from Tata Group

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.

Tata Technologies was the first company from the Tata Group to float an initial public offer (IPO) in nearly two decades, as Tata Consultancy Services (TCS) was the last IPO from the conglomerate in 2004.

Tata Investment Corporation share price trend

Tata Investment Corporation has been rated by CRISIL since 1994 and has been assigned their highest rating of ‘AAA’ (pronounced triple A), representing the highest safety in payment of interest and principal amount, whose rating has been reaffirmed from year to year and is valid to date.

TICL acquired a 95.57% stake in Simto Investment Co. Ltd. (Simto) on August 31, 2012, following which Simto became a subsidiary of TICL, per the company's website.