Tata Capital, the financial services arm of the Tata Group, is preparing for an Initial Public Offering (IPO) in compliance with Reserve Bank of India (RBI) regulations mandating that 'upper layer' Non-Banking Financial Companies (NBFCs) list their shares by September 2025.
IPO Details:
Opening Date: Expected by September 2025.
Price Band: Details to be announced closer to the IPO date.
Grey Market Premium (GMP): Not yet available; GMP typically becomes active once the IPO opens for subscription.
Company Overview:
Established in 2007 and headquartered in Mumbai, Tata Capital offers a range of financial products, including retail lending, corporate finance, wealth and asset management, investment banking, leasing, infrastructure financing, and insurance services. As of October 2024, the company reported a loan book of ₹1,76,536 crore, a profit after tax of ₹1,825 crore, and served over 5.2 million customers across 900 branches.
Financial Performance:
For the fiscal year ending March 31, 2024, Tata Capital reported revenues of ₹18,178 crore, a 34% increase over the previous fiscal year, with a net profit of ₹3,315 crore.
IPO Process:
Tata Capital has engaged Kotak Mahindra Capital as the investment banker and Cyril Amarchand Mangaldas as legal advisors for the IPO process. The offering is expected to consist of both primary and secondary share issues, aiming to raise approximately ₹15,000 crore, which would make it one of the largest IPOs in Tata Group's history.
Regulatory Compliance:
The RBI's classification of Tata Capital as an upper-layer NBFC necessitates the public listing by September 2025. This IPO will mark the second listing for the Tata Group in recent years, following Tata Technologies' successful IPO in November 2023.
Investment Considerations:
Prospective investors should stay informed about the IPO's progress by monitoring official announcements from Tata Capital and consulting financial advisors to assess the investment's suitability based on individual financial goals and risk tolerance.
Note: All information is based on reports up to December 2024. For the most current details, please refer to official sources.
