KuberGrow Team Tata Capital is gearing up for one of the most anticipated IPOs in recent times, setting the stage for a massive market debut. The financial services arm of the Tata Group has officially approved plans to go public, offering a mix of 23 crore fresh equity shares alongside an offer-for-sale from existing shareholders. With its strong market presence and deep-rooted backing from Tata Sons, this IPO is already generating major buzz.
But that’s not all—before stepping into the stock market limelight, Tata Capital is strengthening its financial base with a Rs 1,504 crore rights issue for its existing shareholders. Given the blockbuster success of Tata Technologies’ IPO in 2023, investors are watching closely, wondering if Tata Capital will deliver a similar market frenzy.
The company has been laying the groundwork for this move for months. Back in December, reports surfaced that Tata Capital was working on a Rs 15,000-crore-plus IPO, enlisting the expertise of advisory heavyweights Cyril Amarchand Mangaldas and Kotak Mahindra Capital. But beyond the excitement, there’s a regulatory push at play—the Reserve Bank of India has mandated that large NBFCs classified as ‘upper layer’ must list publicly by September 2025. Tata Capital, following its merger with Tata Capital Financial Services in early 2024, falls under this category, making the IPO a strategic necessity as well.
A giant in the NBFC space, Tata Capital manages assets worth Rs 1.58 lakh crore as of March 2024. Its parent company, Tata Sons, holds a whopping 92.83% stake, while other Tata group entities and trusts own the remaining shares. Over the past five years, Tata Sons has poured Rs 6,097 crore into Tata Capital, with a hefty Rs 2,003 crore infusion in the last fiscal alone—clear proof that the group is doubling down on its financial services ambitions.
The market has already responded to the news with excitement. Shares of Tata Investment Corporation shot up by 8%, trading at Rs 6,218 apiece. If recent IPOs like Bajaj Housing Finance are any indication—where shares skyrocketed by 135% on listing day—Tata Capital’s market debut could be another major win for investors.
