Drashti Chheda Tata Investment Corporation shares saw a healthy jump on Monday, gaining over 6% intraday before settling with a 4% gain, driven by a wave of optimism around Tata Capital’s upcoming IPO. Investor excitement surged following a report that Tata Capital is preparing to file its updated Draft Red Herring Prospectus (DRHP) with SEBI to meet the September deadline for mandatory listing.
The stock, which had declined in the previous two sessions, quickly bounced back and was trading around ₹6,798 at 2:35 p.m., up 3.93% from the previous close. At one point, it even touched ₹6,849 on the NSE. What’s fuelling the rally? The anticipation that Tata Capital’s IPO could unlock serious value and expand Tata Group’s footprint in the listed financial services space.
Tata Investment Corporation currently holds a 2.2% stake in Tata Capital. With Tata Sons owning nearly 93% of the non-banking financial company, the IPO will mark a significant milestone in the group’s ongoing push toward transparency and public participation. According to reports, Tata Sons is planning to offload up to 23 crore shares in the IPO, while the International Finance Corporation (IFC) may sell 3.58 crore shares. Additionally, the company is expected to issue up to 21 crore fresh shares, strengthening its capital base.
Beyond regulatory compliance, the listing is also a strategic move to meet the Reserve Bank of India’s requirement that all NBFCs categorized as ‘upper layer’ must go public by September 2025. In that sense, Tata Capital is not just ticking a regulatory box—it is entering a new league of visibility and credibility.
The timing also seems to be working in the company’s favor. Tata Capital has posted strong financial numbers that should help it attract robust investor interest. For the March 2025 quarter, it reported a 31% year-on-year jump in consolidated net profit, rising to ₹1,000 crore from ₹765 crore a year ago. Revenue for the same quarter saw an impressive surge of nearly 50%, hitting ₹7,478 crore compared to ₹4,998 crore previously. For the full financial year 2024–25, net profit climbed to ₹3,655 crore, while total revenue jumped to ₹28,313 crore.
The IPO also presents an opportunity for retail investors to finally get exposure to one of the more quietly efficient arms of the Tata empire. Tata Capital has long been a well-known name in financial circles, and this public issue will allow it to step out of the shadows and into the public market spotlight.
So while the markets wait for the final IPO timeline, Tata Investment Corporation is already getting a taste of the action. Whether this momentum sustains or not will depend on how the IPO unfolds, but for now, investor sentiment seems firmly strapped in for the ride.
