IPO
Tata Group Financial Service company, Tata Capital, has filed initial documents for IPOs worth more than Rs 15,000 crore under the confidential pre-filing route near the market regulator SEBI. The Mega IPO will include issuing new shares as well as selling stake by Tata Sons, which has a 93% equity stake in Tata Capital. Industry sources have given this information. Tata Capital is a non-banking financial services (NBFC) company and the investment holding company is a major subsidiary of Tata Sons.
Approval was given on 25 February
On 25 February, the Tata Capital Board approved the IPO scheme and said that it would include a new issue of 23 million shares and a proposal to sell equity shares by its current shareholders. The company said that IPO is subject to market conditions and regulatory approval. As of March 31, 2024, Tata Sons had a 92.83 percent stake in Tata Capital Limited, while the remaining stake was held by other institutions of the Tata Group and IFC. Fitch’s report released last month said that Tata Sons’s share in Tata Capital is unlikely to fall below 75 percent in the near future after Tata Capital’s planned public listing.
Rights issue was also approved
The board of Tata Capital also approved the Rights issue in February to raise Rs 1,504 crore before the launch of the IPO. In FY24, Tata Capital recorded a revenue of Rs 18,178 crore, which is 34% higher than FY23. The company’s loan book crossed Rs 1 lakh crore with an increase of 40% annually and the profit was the highest at Rs 3,150 crore so far.
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