Tata Capital IPO: Upper-layer NBFC to file DRHP post NCLT nod on merger with Tata Motors Finance

The National Company Law Tribunal (NCLT) has yet to give a final order on this. The report said the nod will likely to be given by the end of the current financial year (FY25).

How did Tata Investment Corp's share price react?

Tata Investment Corporation shares declined 1.26% to ₹6,304.6 apiece on the National Stock Exchange (NSE) at 11:14 am.

Its market capitalisation stands at ₹31,909.95 crore.

Tata Capital IPO

Tata Capital has already received approval from its board to launch an IPO. The issue would comprise a fresh issuance of 2.3 crore equity shares and an offer-for-sale component by existing investors. It could raise up to $2 billion (over ₹17,000 crore).

The issue could be among the biggest in India's financial sector if successful.

The company must list on bourses by September 2025 due to RBI's guidelines, which mandate that upper-layer NBFCs list within three years of being identified as such.

As per Crisil Ratings, Tata Capital owned 92.83% of Tata Capital shares as of March 31, 2024. The majority of the remaining shares are held by other Tata Group firms.

"Tata Sons also has personnel from its senior management on TCL's Board. Tata Sons has infused capital of ₹6,097 crore in TCL in the last five fiscals, of which ₹2,500 crore was infused in fiscal 2019, ₹1,000 crore in fiscal 2020, ₹594 crore in fiscal 2023 and ₹2,003 crore during fiscal 2024, indicating the intent of the group to step up its focus on the lending business," the report said.