Tata Investment Corporation shares rose over 6 percent in intraday trading on Monday following a report that Tata Capital is in the process of filing updated initial share sale documents with the markets regulator.
The stock rose as much as 6.25 percent on NSE before paring some of the gains to trade at Rs 6,798, up 3.93 percent at 2:35 p.m. The rise comes after two straight sessions of decline.
Tata Investment Corp owns 2.2 percent of Tata Capital. And Tata Sons holds nearly 93 percent stake in the non-bank lender.
Investor sentiment was buoyed by optimism that the Tata Capital IPO may unlock value and boost the group’s presence in the listed financial services space.
Tata Capital’s IPO will involve Tata Sons offloading up to 23 crore shares, while International Finance Corporation is expected to sell 3.58 crore shares. Additionally, the company plans to issue up to 21 crore fresh shares, according to NDTV Profit.
The listing move is aimed at meeting the Reserve Bank of India’s requirement for all NBFCs classified as ‘upper layer’ to go public by September.
Tata Capital rights issue at nearly one-third the unlisted price
Tata Capital has been showing strong financial performance ahead of the IPO. For the March 2025 quarter, the company reported a 31 percent year-on-year increase in consolidated profit after tax (PAT), rising to Rs 1,000 crore from Rs 765 crore a year ago. Revenue from operations for the same quarter surged by nearly 50 percent to Rs 7,478 crore, compared to Rs 4,998 crore in the year-ago period.
For the full financial year 2024-25, PAT rose to Rs 3,655 crore from Rs 3,327 crore in FY24, while total revenues climbed to Rs 28,313 crore from Rs 18,175 crore.
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