Tata Capital board on Tuesday announced initial public offering (IPO) comprising 23 crore fresh shares and an offer for sale of equity shares by eligible shareholders of the company. In addition, the board approved rights issue not exceeding ₹1,504 crore.
Listing & IPO details
The company has not disclosed any further information, including the listing timeline. However, the upper layer NBFC, including Tata Capital, should debut on bourses by September 2025 as per RBI guidelines. The total size of the IPO is expected to be around ₹15,000 crore.
In the unlisted market, Tata Capital stock is said to have rallied from ₹800-825 to ₹1,000-1050 level a week ago.
However, brokerages except the stock to list around ₹500-700 level.
Bloomberg report quoted Manan Doshi, co-founder of Unlisted Arena, saying that shares are currently priced at levels that value the company at 13 times its book value, which looks expensive relative to comparable companies.
H1FY25 performance
The Mumabi-headquartered NBFC recorded a 21 per cent increase in y-o-y net profit for H1FY25 at ₹1,825 crore. Its loan book soared 33 per cent, net interest margin (NIM) including fees rose 6.4 per cent at ₹5,208 crore, while credit cost jumped to ₹581 crore in H1FY25.
Shareholding pattern
Tata Capital is the financial services arm of Tata Sons Pvt Ltd, a top shareholder with 92.8 per cent stake as of March 2024.
Listed entity Tata Investment Corporation owns about 2 per cent stake. The stock soared 7 per cent on the National Stock Exchange to close at ₹6,158.15 on Tuesday following the IPO announcement, after hitting an intraday high of ₹6,344.
Other Tata Group companies with investments in Tata Capital include: Tata Chemicals, Tata Motors, Tata Consumer Products, and Tata Power Company.
Tata Consumer Products closed at ₹1,004.95 on the NSE, up 0.25 per cent. Meanwhile, shares of Tata Chemicals, Tata Motors, and Tata Power Company closed in red, declining over 1 per cent.
Trading across equity, derivatives, securities lending and borrowings (SLB), currency and interest rate derivates segments will remain closed today on account of Mahashivratri. The BSE and the National Stock Exchange will resume operations as usual on February 27, 2025.