Tata Capital shares surge over 3% after settling case with SEBI over NCD violations

Shares of Tata Capital rose as much as 3.2% to hit an intraday high of ₹355 on the National Stock Exchange a day after it informed exchanges that it has settled a case with the market regulator Securities and Exchange Board of India (SEBI) over Non-Convertible Debentures (NCD) violation by Tata Motors Finance Limited which was merged with Tata Capital in May this year.

As part of the settlement, Tata Capital has paid ₹32 lakh to SEBI to settle the case by neither admitting nor denying the findings of facts and conclusions of law.

"In five instances of issuance of the Non-Convertible Debentures (“NCDs”) on private placement basis, it was found that said NCDs were down sold to more than 200 investors prior to the date of the listing of such NCDs (in case of two issuances of listed NCDs) and within six months from the date of the allotment (in case of three issuances of unlisted NCDs). Thus, the issuance of these NCDs by erstwhile TMFL is deemed to be public issue and is in violation of the applicable provisions of the Act and SEBI Regulations," Tata Capital said in a regulatory filing.

Tata Capital IPO

Tata Capital launched its share sale via initial public offering (IPO) in October this year and raised ₹15,512 crore which was a mix of fresh issue and offer for sale. The IPO comprised of fresh issue of ₹6,846 crore and an OFS worth ₹8,666 crore.

Tata Capital had posted a 2% increase in its consolidated net profit to ₹1,097.32 crore in the September of FY26, compared to ₹1,075.72 crore a year back.

The company offers over 25 lending products, serving a diverse customer base, including small businesses, SMEs, entrepreneurs, corporates, self-employed individuals and salaried workers. Its key offerings include commercial finance, consumer loans, wealth management, private equity, investment banking and cleantech finance.

As of 11:34 am, Tata Capital shares traded 1.51% higher at ₹349.40, outperforming the NIFTY IPO index which was up 0.23%.