Tata Capital announces IPO, to issue fresh shares worth ₹23cr
25 Feb 2025

Tata Capital, the Tata Group's subsidiary, has announced its plans for an initial public offering (IPO). The company's board approved the decision today.

The IPO will consist of a new issuance of stocks with a face value of ₹10 each, amounting to ₹23 crore.

An offer for sale (OFS) from some existing and eligible shareholders will also be included in the IPO.

Board approves rights issue worth ₹1,504cr
Rights issue

Along with the IPO, Tata Capital's board has also approved a ₹1,504 crore rights issue for existing shareholders. The record date for this rights issue has been fixed as February 25, 2025. However, the company is yet to disclose the price/entitlement ratio for this issue.

A significant event for Tata Group
Market debut

Notably, the completion of this IPO will make Tata Capital the first company from the Tata Group to debut on the stock market in over 15 months.

The last one to do so was Tata Technologies in November 2023.

This is especially noteworthy as it comes after a long spell of silence from the group on new market entrants.

A response to RBI regulations
Regulatory compliance

Recently, the Reserve Bank of India (RBI) classified Tata Capital as an upper layer Non-Banking Financial Company (NBFC) for the fiscal year 2024-2025.

To meet RBI norms, the company has to list by September 2025.

This regulatory requirement is one of the main reasons behind Tata Capital's decision to go for an IPO.

IPO announcement boosts Tata Investment's share price
Market impact

After Tata Capital's IPO announcement, the share price of Tata Investment Corporation (TICL) jumped 7.7% to ₹6,197.50 on the National Stock Exchange (NSE).

TICL currently holds over 2% stake in Tata Capital while its parent Tata Sons owns 93% of the NBFC.

The upcoming IPO is likely to dilute this holding.