Shares of Tata Investments rallied over 8 per cent on February 25 after the Tata Capital board approved plans for an initial public offering.
Founded in 2007, Tata Capital offers a range of loans from housing to personal. Tata Sons is its top shareholder with a 92.8 per cent stake due by March 2024. Tata Sons Private Limited holds 68.51 per cent stake in Tata Investment Corporation, according to exchange data for the quarter ended December 2024.
Shares of Tata Investment Corporation Limited rose 8.24 per cent to hit an intraday high of Rs 6,230 per share on the NSE. Later, it pared some gains to trade at Rs 6,136 per share, up 6.61 per cent at 9:55 am.
The Tata Capital board said the IPO will comprise a fresh issue of 23 crore equity shares and an offer for sale by existing shareholders. Notably, this will be the first IPO 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 has begun work on a mega IPO worth over Rs 15,000 crore, which will be a combination of primary and secondary issuance of shares.
The report had said the firm has roped in advisors Cyril Amarchand Mangaldas and Kotak Mahindra Capital. The Tata Group’s decision is in line with the Reserve Bank of India’s order that requires ‘upper layer’ non-banking financial companies (NBFCs) to go public within three years of being classified, with a deadline set at September 2025.
Tata Capital Financial Services, which merged with Tata Capital in January 2024, is one of the entities listed by the regulator.
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