Tata Investment Shares Surge 10 Per Cent As Tata Capital’s Board Approves IPO Plans

Tata Investment's share price surged 10 per cent on February 25, Tuesday to Rs 6,220.75 on the National Stock Exchange (NSE) after Tata Capital’s board approved plans for an initial public offering (IPO).

Tata Capital is a non-banking financial services (NBFC) company, which operates as an arm of Tata Sons, the group's holding company. As of now, Tata Investment Corporation (TICL) has over a 2 per cent share in Tata Capital, while its parent company, Tata Sons, holds 93 per cent of the NBFC.

Tata Capital IPO Details

Tata Capital's IPO will consist of a fresh issue of shares with a face value of Rs 10 each, summing up to Rs 23 crore. The rest of the offering will include an offer for sale (OFS) by select existing and valid shareholders.

The size of the OFS and the identity of the selling shareholders in the IPO have not been disclosed yet. As per Tata Capital's filing, the OFS will depend on market circumstances, necessary approvals, regulatory clearances, and other related factors.

Additionally, Tata Capital's board has given a green signal to Rs 1,504 crore rights issue for existing shareholders, with the record date set for February 25, 2025.

Tata Capital is yet to finalise the rights issue price or the entitlement ratio.

Once it is done, Tata Capital will be the first Tata Group company to enter the stock market in over 15 months. The last Tata Group firm to list on exchanges was Tata Technologies, in November 2023, marking the group’s first IPO since TCS approximately 20 years ago.

Meanwhile, the Reserve Bank of India (RBI) categorised Tata Capital as an upper-layer Non-Banking Financial Company (NBFC) for 2024-2025. To adhere to RBI regulations, Tata Capital must go public by September 2025.

Tata Investment Share Price Trend

Tata Investment shares surged to around 10.32 per cent to hit the intraday high of Rs 6343.80 apiece. At the time of writing this report at 11:42 am, the scrip was trading in green, up 7.57 per cent higher at Rs 6,190.70 apiece, on NSE. The company enjoys a market capitalisation of Rs 31,322.03 crore, as per NSE.

Tata Investment stock has given a return of over 588.12 per cent in the last five years. However, the stock has witnessed a downtrend of over 12 per cent in a year but gained over 2 per cent in six months.