Tata Group IPO: Last year, in the year 2023, about 19 years after the listing of TCS, the shares of Tata Tech, a Tata Group company, were entered in the market. After the successful listing of Tata Tech, shares of another Tata company Tata Capital are about to enter the market. Tata Capital, the group’s flagship financial services unit, has started work on this. Moneycontrol has received this information from sources. According to the information, this IPO can be worth around Rs 15 thousand crores. However, no final opinion has been formed yet.
Tata Sons directly holds 92.83 per cent stake in Tata Capital and the remaining stake is held by other Tata Group companies and trusts. According to the September report of Crisil Ratings, its AUM was ₹ 1,58,479 at the end of March 2024, ₹ 1,19,950 crore at the end of March 2023 and ₹ 94,349 crore at the end of March 2022.
Tata Capital IPO: This is why preparations are being made for listing
Tata Capital is a non-banking financial services (NBFC) firm and is a subsidiary of Tata Sons, the group’s principal investment holding company. Since it is an upper layer NBFC and as per RBI rules, it is necessary to list it in the stock market within three years of coming into this category. This three-year deadline for Tata Capital is ending by September 2025, which means it has to be listed in the market by September 2025. On September 30, 2022, RBI had announced 16 NBFCs to be in the upper layer, one of which was Tata Capital Financial Services. Tata Capital Financial Services merged into Tata Capital in January 2024.
How far has the work on IPO reached?
According to sources, law firm Cyril Amarchand Mangaldas and investment bank Kotak Mahindra Capital have been selected as advisors. Apart from this, talks are also going on for more investment banks. According to the information, new shares will be issued under this IPO and along with this, existing shareholders will also reduce their stake under Offer for Sale.
Tata Tech IPO Listing: Tata shows enthusiasm again after 19 years, listing gain of 140% fills the bag