Tata Capital Approves IPO 23 Crore New Shares for Big Stock Market Debut
Tata Capital, a leading financial services provider under the Tata Group, has greenlit its much-anticipated initial public offering (IPO) on Tuesday, February 25, 2025. The non-banking financial company (NBFC) plans to issue 23 crore fresh shares, while existing shareholders will offload part of their stakes through an offer for sale (OFS). This marks a significant step for the company as it gears up to hit the stock exchanges by September 2025, in line with Reserve Bank of India (RBI) rules for “upper layer” NBFCs.
This IPO will be the first from the Tata Group since Tata Technologies debuted in November 2023, raising excitement among investors. Tata Capital, founded in 2007, offers a wide range of services, including home loans, personal loans, business loans, and wealth management. With Tata Sons holding a commanding 92.8% stake as of March 2024, the IPO will dilute its ownership, though exact details remain under wraps.
The company has kept quiet about the IPO’s size, valuation, and timeline, but market watchers expect it to draw huge interest. India’s financial services sector is booming, and the Tata brand’s reputation for trust and reliability adds to the hype. Analysts predict the listing could value Tata Capital in the billions, given its strong growth and diverse portfolio.
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Ahead of the IPO, Tata Capital’s board also approved a rights issue worth Rs 1,504 crore ($173 million). This cash boost will strengthen its financial foundation, ensuring it’s in top shape for its public debut. The move reflects the company’s strategy to meet RBI’s capital requirements while positioning itself as a major player in India’s competitive NBFC space.
Tata Capital’s journey to the stock market highlights the Tata Group’s continued expansion into India’s financial landscape. As one of the country’s most respected conglomerates, the group has a track record of successful listings, from Tata Steel to Tata Consultancy Services (TCS). Investors and analysts will be watching closely as Tata Capital prepares to join this elite list, potentially unlocking new growth opportunities in the years ahead.
