Tata Capital IPO: Nearly a year after the successful listing of Tata Technologies, the Tata Group is now preparing to launch another big company on the stock market. According to media reports, Tata Capital, a subsidiary of Tata Sons and a major Non-Banking Financial Services (NBFC) company, is planning to bring its Initial Public Offering (IPO).
Preparation for Tata Capital IPO Begins
Reports suggest that work on the Tata Capital IPO has begun rapidly. To comply with RBI’s Upper Layer NBFC rules, the company must list within the next three years.
Tata Capital IPO is estimated to be around ₹15,000 crore.
Tata Capital IPO update
— IPO India (@india_ipo) December 23, 2024
Tata Capital has enlisted Cyril Amarchand Mangaldas and Kotak Mahindra Capital as advisors for the upcoming IPO, which is expected to exceed ₹15,000 crore.
Who are the Advisors for Tata Capital IPO?
For this IPO, the company has appointed law firm Cyril Amarchand Mangaldas and Kotak Mahindra Capital as advisors. Other investment banks are also being contacted to be part of this process. It is expected that this public issue will include both primary and secondary shares.
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RBI Rules and Listing Deadline
In September 2022, RBI issued a circular mandating that Upper Layer NBFCs must list within three years. This deadline ends in September 2025. Following this rule, Bajaj Housing Finance launched its IPO in September 2024, which received tremendous response from investors and listed at a 135% premium compared to the issue price.
Increased Possibility of Tata Capital IPO Due to Merger
In June 2024, the board members of Tata Motors, Tata Capital, and Tata Motors Finance Limited approved a merger under the NCLT Scheme. Under this merger, Tata Capital will issue its equity shares to the shareholders of Tata Motors Finance. After this merger, Tata Motors will have a 4.7% stake in the new company.
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Why Investing in Tata Capital?
Tata Group’s companies are known for their stability and growth. The Tata Capital IPO could be a big opportunity for investors, especially as it maintains a strong position in the NBFC sector.
Potential Dates and Expectations
Although the exact dates of the IPO have not been announced yet, it is set to be launched in the first half of 2025.
Upcoming IPOs in December 2024
Conclusion
The Tata Capital IPO will be a significant opportunity for investors and will also mark a new chapter in Tata Group’s expansion and growth. Investors should be fully prepared for this IPO.