The news about the unexpected surge in the Tata Shares this morning 25th Feb 2025, has generated significant interest among the investor. The increase in the share price is due to Tata Capital’s confirmed plans for an initial public offering (IPO). On Tuesday, 25th February, the company announced that Tata Capital’s board had approved the offering, which will include the issuance of 23 crore new shares along with an offer for sale (OFS) by existing shareholders.

This decision follows the Reserve Bank of India’s (RBI) rule that requires “upper layer” non-banking financial companies (NBFCs) to go public by September 2025. In this blog, we will explore its key details and the impact it may have on its prominent investors.

History and Overview of Tata Capital

  • Founded: Established in 2007 as a subsidiary of Tata Sons.
  • Operational Model: Functions as a non-banking financial company (NBFC) under the regulation of the Reserve Bank of India (RBI).
  • Services Offered: Provides retail and corporate loans, wealth management, investment banking, and infrastructure financing.
  • Core Products:
    • Personal loans
    • Home loans
    • Business loans
    • Vehicle financing
    • Structured finance solutions
  • Target Market: Caters to individuals, businesses, and institutions across diverse sectors.
  • Expansion & Growth:
    • Strong nationwide presence.
    • Utilizes digital innovations and strategic alliances.
    • Strengthening its footprint in investment advisory and wealth management.
  • IPO Approval: Recently received approval for an initial public offering (IPO) in compliance with RBI regulations, paving the way for future growth.

Current price of Tata Investment Share

  • Tata Investment Corporation Ltd shares jumped 10% to an intraday high of ₹6,343.80 on the BSE.
  • Later, the stock pared some gains and was trading at ₹6,200.00, up 7.82%, around 11:05 AM.
  • In addition to approving the IPO, Tata Capital’s board also authorized a ₹1,504 crore ($173 million) rights issue.
  • This fund infusion is intended to enhance the company’s financial stability ahead of its stock market listing.

Details of Latest TATA Capital IPO (Initial Public Offering) 2025

1. This will be Tata Group’s second stock market listing in 20 years, following Tata Technologies’ successful IPO in November 2023. The last IPO before that was Tata Consultancy Services (TCS) in 2004, which raised ₹5,500 crore.

2. While details about valuation, issue size, and timing are yet to be revealed, the IPO is expected to attract strong investor interest due to Tata’s reputation and India’s growing financial sector.

3. Founded in 2007, Tata Capital is a major NBFC offering home loans, personal loans, business loans, and investment solutions. Tata Sons currently owns 92.8% of the company (as of March 2024), and its stake will be reduced post-IPO, though the extent will depend on the final offering structure.

4. Tata Capital is the parent company for its three lending businesses—Tata Capital Financial Services, Tata Capital Housing Finance, and Tata Cleantech Capital—as well as three investment and advisory units—Tata Capital Singapore, Tata Securities, and its private equity division.

Impact on Investors after Tata Capital IPO

1. Tata Capital’s IPO is a significant milestone for the Tata Group, marking its second public listing in 20 years after Tata Technologies’ IPO in November 2023.

2. Founded in 2007, Tata Capital provides various financial services, including home loans, personal loans, and business financing.

3. The IPO is expected to strengthen Tata Capital’s financial position, allowing it to expand its services and strengthen its market presence.

4. The rise in Tata Investment Corporation’s share price reflects strong market confidence in Tata Capital’s IPO.

5. As a major shareholder in Tata Capital, Tata Investment could see increased value following the listing, benefiting its investors.Top of Form

Final Thoughts

Tata Capital’s IPO approval marks a key step forward for the Tata Group, aligning with regulatory requirements while leveraging opportunities in the financial sector. The market’s positive reaction, seen in the rise of Tata Investment Corporation’s share price, highlights investor confidence in the group’s strategy and the expected success of Tata Capital’s public listing.

FAQs

Q1. Is it good to invest in Tata Capital Stocks?

Ans. Yes, since Tata Capital is part of the Tata Group and has a strong financial track record, its unlisted shares are seen as a good investment for those interested in the financial services sector.

Q2. Did Tata Capital approve any additional funding with the latest Tata Capital IPO?

Ans. Yes, besides approving the IPO, Tata Capital’s board has also approved a ₹1,504 crore ($173 million) rights issue.

Q3. Is Tata Capital approved by RBI?

Ans. Yes, Tata Capital is registered with the Reserve Bank of India (RBI) and is classified as an upper-layer non-banking financial company (NBFC) by the RBI.

Q4. How much did Tata Investment Corporation Ltd share rise on the BSE?

Ans. Tata Investment Corporation Ltd stock jumped 10%, hitting an intraday high of ₹6,343.80 on the BSE on 25th February 2025.

Q5. Which company owns Tata Capital IPO?

Ans. Tata Sons is the parent company of Tata Capital. Tata Capital, an NBFC, operates as a subsidiary of Tata Sons, which serves as the principal investment holding company of the Tata Group.

Q6. What will be the price of the latest Tata Capital IPO?

Ans. Tata has not yet announced the IPO price or the exact launch date. The company will likely reveal these details in the coming months as the IPO process progresses.

Sources: msn.com

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