Speaking exclusively to Moneycontrol, on the sidelines of listing of Tata Capital on the stock exchanges, MD & CEO Rajiv Sabharwal said he is quite content with the outcome of the listing process. When asked if he was disappointed that the company’s shares did not list at a premium to the IPO pricing, which was at Rs 310–326 a share, Sabharwal replied that at this juncture he is focused on ensuring that Tata Capital’s performance in terms of growth is improving quarter after quarter. Stating that December and March quarters of FY26 may be robust because of a better-than-anticipated festive season demand reflecting on products such as auto loans, two-wheeler loans and tractor loans. Edited excerpts:
You’ve crossed major hurdle of listing. How does it feel?
It's a great experience. We feel a sense of big responsibility. We have added over 22 lakh new shareholders to the Tata Capital family. With the business model which we have created and the opportunity which India provides, I feel we are into Tata Capital 2.0 and I’m really looking at the big opportunity. We are also looking at how as an institution, we can be a part of the India growth story and play a big role in the same.
What about the listing price? It's wasn’t at a premium to the IPO price…
As I've always said, we are pretty happy with what has happened. More importantly, we are focused on ensuring that our performance keeps improving. We are very bullish on growth. As far as Q3 and Q4 of FY26 is concerned with all the GST cuts and the benefits coming in, I think it's going to be very good quarters as we see it. We are seeing technology play a very big role in bringing in better customer experience and improve operating efficiency. Even from a credit cycle perspective, we are only going to see better quarters in the future. As I had mentioned before, the peaking of credit costs are behind us, and a combination of all of this will lead us to a much better future.
How has the festive season coupled with the GST rate cuts panned out so far?
We clearly are seeing an uptick, especially in the last 10 days of the quarter that just went by. There are products where you will see immediate response coming in, such as auto, two-wheelers and tractors loans and some of these products show an immediate response. Similarly, on the consumer side, things will start flowing in as the benefit of lower raw materials sinking in.
The RBI, in the recent monetary policy has made it more convenient for NBFCs to participate large infrastructure loans. Tata Capital is entrenched into green-tech lending through its subsidiary. With this relaxation coming through, will Tata Capital play a key role in infra-funding?
We've always been doing that. We have financed over 500 projects in the clean energy area and we have created one of the best books in the industry as far as quality is concerned. We believe that this sector has huge potential as it is not only beneficial to the users who use electricity because it comes at a lower price, but I think from a sustainability perspective it's a big step forward.
What are the three key takeaways for the new investors who have on-boarded Tata Capital league table as the company enters its second phase of growth?
We've had an industry leading growth and we would like to continue on the same. We've always kept our credit costs as the best in the industry and will continue to do so in the future too. We have leveraged technology for the benefit of our customer including Gen AI. We will continue to do so in the future as well.
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