KuberGrow Team Mumbai, March 2025 – TCL is creating a buzz with its recent rights issue, a step that will enhance investor confidence and strengthen its financial base. The firm has proposed a Rs. 1504 crore equity issue, offering current shareholders an opportunity to pick up extra shares at a premium price. With more than 5.35 crore fresh shares on offer, this project is designed to consolidate Tata Capital’s position as a financial firm while rewarding the faithful investors of the company.
Tata Capital’s Board of Directors gave the nod to the offer on February 25, 2025. As per the scheme, the shareholders holding TCL shares on the record date shall be entitled to one extra share for every 70 held by them. Priced at Rs. 281 a share—Rs. 10 being the face value and a large premium of Rs. 271—the opportunity is a strategic one aimed at strengthening shareholder value and long-term value.
This rights issue is more than just an equity sale; it’s a chance for shareholders to deepen their stake in a company that has consistently shown financial Growth. The proceeds from this offering will be directed toward expanding Tata Capital’s lending capacity, investing in subsidiaries, and making sure the compliance with RBI’s regulatory norms. The company plans to use part of the funds to repay existing debts and redeem preference shares, further strengthening its balance sheet.
What is so attractive about this issue of rights is that it has a bonus-like feel to it. Shareholders are, in effect, being rewarded with additional shares at a special price, which is an attractive proposition for those who are optimistic about Tata Capital’s long-term plans. Unlike regular issues of rights, when investors have the option of selling their entitlements, this issue is non-renounceable, and thus only current shareholders have access to it. Individuals who desire to increase their holding can also make applications for extra shares over their entitlement, depending on availability.
The application period begins on March 7, 2025, and will end on March 16, 2025. Investors can apply with ease online using the Registrar’s Web-based Application Platform (R-WAP), guaranteeing an easy and trouble-free process.
The financials of Tata Capital have been robust with profits touching Rs. 2074.84 crore as of December 2024. The rights issue is likely to not only support the growth plans of the company but also increase market liquidity and encourage more institutional investors. By strengthening its capital base, Tata Capital is reinforcing its leadership position in India’s financial markets.
For shareholders, this is not another corporate move—it’s a vote of confidence by Tata Capital in its future. The company’s intent to reinvest in growth and provide value added to shareholders shows a strong strategy for long-term sustainability. As an investor with Tata Capital, this might be the right time to ride on an opportunity that holds much promise for huge returns in the coming years.
