Tata Capital on February 25 said that it has approved plans for an initial public offering which would comprise a combination of fresh issue of 23 crore equity shares and an offer-for sale by existing shareholders.
Tata Capital did not share any further details on its proposed public float. Established in 2007, Tata Capital provides a wide range of loans from housing to personal.
The board has decided to issue shares worth up to Rs 1,504 crore on a rights basis to existing shareholders of company. Notably, the IPO would be the first by a Tata Group company after the bumper listing of Tata Technologies in 2023.
On December 24, Moneycontrol was the first to report that Tata Capital had initiated work on a mega Rs 15,000-crore plus IPO which would be a combination of primary and secondary issuance of shares. The report had added that the firm had roped in advisors Cyril Amarchand Mangaldas and Kotak Mahindra Capital.
The move by Tata Group is in line with RBI's mandatory requirement for 'upper layer' NBFCs to list within three years of being notified, that is by September 2025. Tata Capital Financial Services, which merged with Tata Capital later in January 2024, is on the regulator's list.
Bajaj Housing Finance, another firm in the RBI 'upper layer list', made a scintillating market debut on September 16, hitting the upper circuit, with a premium of 135 percent over the IPO issue price at the end of the trading session.
Tata Capital is a non-banking financial services (NBFC) firm and a subsidiary of the business group's principal investment holding company Tata Sons.
According to a September report by Crisil Ratings, the firm had an AUM of Rs 158,479 crore as on March 31, 2024. Tata Sons directly owned 92.83 percent of Tata Capital Limited's equity shares while most of the remaining stake was held by other Tata group companies and trusts as on March 31, 2024.
According to the Crisil Ratings report, "Tata Sons has infused capital of Rs 6,097 crore in Tata Capital Limited in the last five fiscals, of which Rs 2,500 crore was infused in fiscal 2019, Rs 1,000 crore in fiscal 2020, Rs 594 crore in fiscal 2023 and Rs 2003 crore during fiscal 2024, indicating the intent of the group to step up its focus on the lending business."
After the announcement by Tata Capital, the shares of Tata Investment surged 8 percent to trade at Rs 6,218 apiece.
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