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The board of Tata Capital has approved the launch of its IPO, leading to a significant surge in the shares of Tata Investment Corporation. The IPO will include a fresh issue of shares and an offer for sale.
Tata Capital, the NBFC arm of the Tata Group, has received board approval to proceed with its Initial Public Offering (IPO). Following this announcement, Tata Investment Corporation's stock experienced a rally, climbing nearly 10% to ₹6321.
The Tata Capital IPO will consist of both a fresh issue of shares and an offer for sale (OFS), where existing shareholders will offload a portion of their holdings. Additionally, the board has approved raising ₹1504 crore through a rights issue to existing shareholders.
According to sources, Tata Capital plans to issue 23 crore new shares and could potentially raise up to ₹15,000 crore through the IPO. This move will pave the way for the company's listing on the stock exchanges.
The surge in Tata Investment Corporation's shares reflects positive investor sentiment towards the Tata Capital IPO.
Furthermore, the approval of the rights issue suggests that Tata Capital is also exploring alternative avenues to bolster its capital base.
It is anticipated that the Tata Capital IPO could launch before September, adhering to Reserve Bank of India (RBI) regulations that mandate the listing of upper-layer NBFCs by September 2025. Tata Sons currently holds a 93% stake in Tata Capital.
Previously, in November 2023, Tata Technologies, another company within the Tata Group, launched its IPO. The IPO was priced at ₹500 per share, and the stock listed at ₹1200, providing multi-bagger returns to investors on the first day of trading.
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