Tata Capital, the financial services division of the renowned Tata Group, is on the brink of making its mark in the stock market with an upcoming initial public offering (IPO). The company’s board has officially greenlit the IPO plans, marking a significant milestone as it becomes the second Tata Group entity to go public in the last twenty years—following the successful launch of Tata Technologies in November 2023.
IPO Composition: New Shares and Existing Stakeholder Sales
According to reports, Tata Capital’s public offering will feature a combination of 23 crore newly issued equity shares along with an Offer for Sale (OFS) from current shareholders. This dual approach not only diversifies the offering but also enhances its attractiveness to potential investors.
- Key Stake: Tata Sons, which currently possesses a 93% ownership stake in Tata Capital, is anticipated to maintain a significant presence post-IPO.
Tata Capital plays a pivotal role as the parent company for various financial services under the Tata umbrella. This includes:
- Tata Capital Financial Services
- Tata Capital Housing Finance
- Tata Cleantech Capital
In addition to these, Tata Capital oversees investment and advisory firms such as Tata Securities and its international branch, Tata Capital Singapore, along with its private equity operations.
Rights Issue to Boost Capital Before IPO
Before the IPO officially launches, Tata Capital’s board has also sanctioned a rights issue aimed at raising up to ₹1,504 crore for its current shareholders. This strategic move is designed to strengthen the company’s financial foundation ahead of its public debut.
By taking these steps, Tata Capital is positioning itself for a successful entry into the stock market, promising exciting opportunities for investors and stakeholders alike. As this financial giant prepares for its IPO, it reflects Tata Group’s commitment to expanding its footprint in the financial services sector.
