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Tata Capital IPO: Tata Motors holds a nearly 4% stake in Tata Capital, while Tata Investment owns about 2%
Tata Motors, Tata Investment
Shares of Tata Motors and Tata Investment rose by up to 3% on March 4, following reports that Tata Capital, the financial services arm of the Tata Group, is aiming for an $11 billion valuation ahead of its planned public issue.
Tata Motors holds a nearly 4% stake in Tata Capital, while Tata Investment owns about 2%, meaning that an increased valuation for Tata Capital would positively impact both companies.
Tata Investment, which acts as the investment arm of the Tata Group, has stakes in several Tata companies. As a result, major developments at the group level, like Tata Capital’s IPO, typically enhance TICL’s prospects, benefiting from the higher valuations of its portfolio.
On the NSE, Tata Investment shares gained 3%, trading at Rs 6,097.65, while Tata Motors saw a slight increase, trading at Rs 623.45.
Tata Group is reportedly eyeing a valuation of around $11 billion for Tata Capital, which could lead to India’s largest IPO of the year, with the public offering potentially raising up to $2 billion, according to Bloomberg sources. However, the final details may change as discussions continue.
Tata Capital’s board has approved the IPO, which will include the issuance of 23 crore new shares, alongside an offer-for-sale (OFS) component, as per its regulatory filings with the NSE and BSE. The financial services firm is set to list on stock exchanges by September 2025, in line with the Reserve Bank of India’s “upper layer” NBFC regulations.
As of March 31, 2024, Tata Sons owns 92.83% of Tata Capital, with the remainder held by other Tata Group entities. Tata Sons has supported Tata Capital with substantial investments over the past five years, totaling Rs 6,097 crore, demonstrating its commitment to expanding its presence in the lending sector. Key executives from Tata Sons also serve on Tata Capital’s board.
