Tata Investment shares surge 8% as Tata Capital board approves IPO

Tata Investment shares surge 8% as Tata Capital board approves IPO

Tata Investment shares advanced over 8 percent on February 25 after Tata Capital board approved plans for an initial public offering.

Established in 2007, Tata Capital provides a wide range of loans, from housing to personal. Tata Sons is its top shareholder, with a 92.8 percent stake as of March 2024. Tata Sons Private Limited holds 68.51 percent stake in Tata Investment Corporation, according to exchange data for the quarter ending December 2024.

The shares of Tata Investment Corporation Ltd rose 8.24 percent to an intraday high of Rs 6,230 per share on the NSE. Later, it pared some of the gains to trade at Rs 6,136 apiece, up 6.61 percent at around 9:55 AM.

Tata Capital board said the IPO would comprise a combination of fresh issue of 23 crore equity shares and an offer-for sale by existing shareholders. Notably, the IPO would be the first by a Tata Group company after the bumper listing of Tata Technologies in November 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.

Tata Group's decision aligns with the Reserve Bank of India's mandate requiring 'upper layer' non-banking financial companies (NBFCs) to go public within three years of being classified, with a deadline set for September 2025. Tata Capital Financial Services, which merged with Tata Capital in January 2024, is among the entities listed by the regulator.

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