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The rally in Tata Investment shares came after reports said the Board of Tata Capital has given a go-ahead to the NBFC’s IPO
Tata Investment Shares Rise 10%
Tata Investment shares saw significant demand on February 25, 2025, with a 10.3% surge during intraday trading on the BSE, reaching a high of Rs 6,343.8 per share. The sharp rally in Tata Investment’s stock came after reports emerged that the board of Tata Capital had approved the company’s plan for an initial public offering (IPO).
By 10:45 AM, Tata Investment’s share price was up 8% at Rs 6,210 per share, outpacing the benchmark BSE Sensex, which rose by only 0.32%. Over the past week, Tata Investment’s stock has jumped 21%, in contrast to a 2% decline in the Sensex.
Reports indicate that Tata Capital’s IPO will feature both a fresh issue and an offer for sale (OFS) by promoters. The IPO is expected to raise around Rs 15,000 crore, with a fresh issue of approximately 230 million shares. The exact number of shares to be sold by promoters through the OFS is not yet confirmed.
Tata Sons, the parent company, holds a 93% stake in Tata Capital. As of December 31, 2024, Tata Sons also holds a 68.51% stake in Tata Investment Corporation. Other shareholders of Tata Capital include Tata group companies (2.46%), International Finance Corporation (1.91%), and the Employee Welfare Trust (1.16%). The remaining 1.64% is held by other investors.
In early February 2025, Tata Capital’s board approved changes to its memorandum and articles of association, further preparing the company for its public listing by September 2025.
Tata Investment Corporation has not yet issued any official statements regarding the IPO report.
Tata Capital IPO Details
As per Reuters, Tata Capital’s upcoming initial public offering (IPO) will include the issuance of 23 crore new shares. Additionally, current shareholders will be allowed to sell a portion of their holdings through an offer for sale (OFS). This move follows Tata Capital’s discussions with investment bankers and the approval to move forward with the listing process.
Tata Capital’s Role within the Tata Group
Tata Capital plays a pivotal role within the Tata Group, acting as the primary financing arm for its various entities. The company offers a broad range of financial products and services, catering to individual consumers, businesses, and institutions. These services include personal loans, mortgages, credit cards, investment banking, and life insurance, among others.
Regulatory Requirements and Growth Prospects
The Reserve Bank of India (RBI) has classified Tata Capital Financial Services as a systemically important non-banking financial company (NBFC), which requires stricter regulatory adherence. As part of this, Tata Capital must list on the stock exchange within a specified period. The planned IPO not only meets these regulatory obligations but also provides a platform for the company to unlock value and accelerate its future growth.
