New Delhi: Tata Capital has received the green signal from its board for its long-awaited initial public offering (IPO). Following the news, the share price of Tata Investment Corporation increased. Other Tata Group companies that hold stakes in Tata Capital are Tata Chemicals, Tata Motors, Tata Power, and Tata Consumer Products.
Reuters reported that Tata Capital, a financial services arm of the Tata Group, will issue 23 crore new shares as part of the public offer. It further stated that some existing shareholders are likely to offload their stakes through an offer-for-sale (OFS) mechanism.
Tata Capital’s Board Approves Long-Awaited IPO
Tata Capital was supposed to list by September 2025, according to the guidelines for so-called “upper layer” non-banking financial companies, Reuters reported. The company was classified as an upper-layer NBFC in September 2022.
Tata Capital will be the first Tata Group company to launch an IPO since the public offer of Tata Technologies opened in November 2023. Tata Capital is yet to share any official confirmation on its proposed public float.
Tata Capital came into existence in 2007. It is engaged in the business of providing a wide range of loans, from housing to personal. Tata Sons has a 92.8% stake in the financial services arm of India’s $165 billion Tata Group as of March 2024.
In 2024, the Competition Commission of India (CCI) gave the green signal to the proposed merger of Tata Motors Finance Ltd into Tata Capital Ltd. Tata Capital is a subsidiary of Tata Sons and is operating as a non-banking financial company – Investment and Credit Company (NBFC-ICC). TCL’s business include, lending, leasing, factoring, financing and distributing financial products.
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Tata Capital, a financial services arm of the Tata Group, has received board approval for its initial public offering (IPO). The IPO will involve issuing 23 crore new shares, with existing shareholders potentially offloading stakes through an offer-for-sale (OFS). Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
