The shares of Tata Investment Corporation jumped nearly 3 percent intraday after a report said that Tata Capital is set to launch its IPO to raise around $2 billion (around Rs 17,688 crore) by early October.
Tata Capital is preparing to launch its IPO in the first half of October after asking Reserve Bank of India for a short extension to the launch timetable, Bloomberg reported citing people familiar with the matter. This comes after RBI told "upper layer" NBFCs to list by September 2025. Tata Capital Financial Services, which merged with Tata Capital in January 2024, is on the regulator's list.
Tata Capital is likely wrap up its IPO roadshows this week and file its second draft red herring prospectus soon, the report further said.
Moneycontrol couldn't independently verify the report.
Earlier in April this year, Moneycontrol reported that the N Chandrasekaran-led diversified conglomerate Tata Group has filed papers with SEBI for a mega Rs 15,000-crore plus initial public offer (IPO) of the group's flagship financial services arm Tata Capital via the confidential pre-filing route.
Tata Capital is a non-banking financial services (NBFC) firm and a subsidiary of the business group's principal investment holding company, Tata Sons.
"The draft papers have been filed with the market regulator through the confidential pre-filing route. The issue will be a combination of combination of primary and secondary issue of shares, Tata Sons and investor IFC will pare stake, with greater participation from the former " one of the persons above said.
On February 25, the Tata Capital board approved the IPO plan and said it will comprise a fresh issue of up to 230 million shares and an offer for sale of equity shares by its existing shareholders. The IPO is subject to market conditions, and regulatory clearances, the company said.
As on March 31, 2024, Tata Sons directly owned 92.83 per cent in Tata Capital Limited while the balance stake was held by other Tata Group entities and IFC.
Tata Investment Corporation shares jumped nearly 3 percent to hit an intraday high of Rs 6,990 apiece. The stock later pared some gains to close 1.4 percent higher at Rs 6,857 apiece. Its P/E ratio currently stands at 159.27.
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