Shimona Sharma
The North News
Chandigarh, February 25
Tata Capital has received regulatory approval to proceed with its initial public offering (IPO), unveiling plans to issue 23 crore new shares. The non-banking financial company (NBFC) will also facilitate an offer for sale (OFS) by existing shareholders, the company announced on Tuesday, as reported by India Today.
The financial services arm of the Tata Group must list its shares by September to comply with the Reserve Bank of India’s (RBI) regulations for “upper layer” NBFCs. This marks the first IPO from the Tata Group since Tata Technologies went public in November 2023, making it a closely watched market event.
According to India Today, while Tata Capital has not disclosed details on the IPO’s size, valuation, or timeline, analysts expect strong investor interest, driven by the Tata Group’s market reputation and India’s expanding financial sector. Founded in 2007, Tata Capital offers a range of financial services, including home loans, business loans, wealth management, and investment advisory. Tata Sons, the group’s holding company, currently owns 92.8% of Tata Capital. The IPO will reduce this stake, though the extent of dilution remains unclear.
In a parallel move, Tata Capital’s board has approved a Rs 1,504 crore ($173 million) rights issue to strengthen its capital base ahead of the public offering.
