Shares of Tata Investment Corporation Ltd rose 4.5% on August 5 on multiple positive triggers like positive June quarter results, a 1:10 stock split and Tata Capital filing updated draft papers for IPO.
Tata Investment Corporation Ltd on August 4 reported 12% increase in consolidated profit after tax at Rs 146 crore in the first quarter ended June 30, 2025 on higher dividend income.
What also aided the bullish sentiment towards the stock is that non-banking financial company Tata Capital has filed updated draft papers for an Initial Public Offering (IPO) comprising up to 47.58 crore equity shares.
The proposed IPO is a combination of a fresh issuance of 21 crore equity shares as well as an Offer For Sale (OFS) of 26.58 crore shares, according to the updated Draft Red Herring Prospectus (DRHP) filed on Monday.
Under the OFS, Tata Sons will offload 23 crore shares, and the International Finance Corporation (IFC) will divest 3.58 crore shares.
Tata Investment Corporation owns 2.2% stake in Tata Capital.
At 1:10 pm on August 5, Tata Investment Corporation shares were trading 4.5% higher at Rs 7,309 apiece.
On August 4, Tata Investment Corporation announced that its board has approved subdivision of the existing equity share having face value of Rs 10 each into ten equity shares having face value of Rs 1 each, fully paid-up subject to approval of the shareholders and any regulatory approvals.
A stock split is seen as a move to increase liquidity in a stock as it could be made more affordable for retail investors.
Tata Investment Corporation's consolidated total revenue from operations in the June quarter stood at Rs 145.46 crore as against Rs 142.46 crore in the year-ago period.
Tata Investment Corporation is a systemically important non banking financial company (NBFC), which has been classified by The Reserve Bank of India (RBI) as a middle layer NBFC.
Sources had told PTI that the Tata Capital IPO size could be $2 billion, valuing the company at around $11 billion.
If successful, this IPO will be the largest initial share sale in the country's financial sector. It will also mark Tata Group's second public market debut in recent years, following the listing of Tata Technologies in November 2023.
This move is part of the company's efforts to comply with the Reserve Bank of India's (RBI's) listing requirements.
As per the RBI mandate, upper-layer NBFCs are required to list on the stock exchange within three years of being designated as such. Tata Capital was categorised as an upper-layer NBFC in September 2022.
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