Tata Group Launch ₹15,000 Crore Ipo Of Nbfc Company In 2025

Tata Capital IPO: Tata Group Likely to Launch ₹15,000 Crore IPO of NBFC Company in 2025

Tata Capital IPO: Tata Group Set to Launch Second IPO in Two Decades

The Tata Group is gearing up for its second Initial Public Offering (IPO) in 20 years with Tata Capital, its financial services arm, set to go public in 2025. This major move comes after the successful listing of Tata Technologies in 2023, marking yet another milestone in the group’s illustrious history.


Why Tata Capital is Going Public

The decision to launch an IPO is primarily driven by the Reserve Bank of India’s (RBI) mandate. Under RBI regulations, upper-layer non-banking financial companies (NBFCs) are required to go public by September 2025. Tata Capital, being part of this category, is obligated to meet this requirement.

Apart from compliance, the Initial Public Offering aims to:

  • Strengthen Tata Capital’s capital base.
  • Support the company’s expansion plans to cater to its growing customer base.

Initial Public Offering(ipo)

IPO Size and Structure

The Tata Capital IPO is estimated to raise a whopping ₹15,000 crore ($2 billion), making it the largest Initial Public Offering in the Tata Group’s history. The offering is expected to include both primary and secondary share sales, creating opportunities for investors to become part of the Tata Group’s expanding financial footprint.


Tata Capital: The Flagship Financial Arm

Tata Capital serves as the Tata Group’s flagship financial services entity. Operating as a non-banking financial company (NBFC), it offers a wide range of products and services, including:

  • Commercial finance
  • Consumer loans
  • Wealth management services
  • Distribution and marketing of Tata Cards

With over 900 branches across India and a customer base of 5.2 million, Tata Capital plays a pivotal role in catering to India’s diverse financial needs.


Strong Financial Performance

Tata Capital’s financial health is robust, showcasing consistent growth:

  • Revenue for FY24: ₹18,178 crore, a 34% year-on-year increase.
  • Net profit for FY24: ₹3,315 crore, reflecting a 12% growth compared to the previous fiscal year.
  • Loan book size as of October 2024: ₹1,76,536 crore.

These figures highlight Tata Capital’s strong performance and the potential value it offers to investors.


Key Advisors for the IPO

To ensure a seamless Initial Public Offering process, Tata Group has enlisted prominent advisors:

  • Kotak Mahindra Capital as the lead investment banker.
  • Cyril Amarchand Mangaldas as the legal advisor.
    Other investment banks are expected to join the advisory panel soon.

Market Anticipation and Impact

The announcement of the Tata Capital Initial Public Offering has sparked excitement in the stock market. Following the news, shares of Tata Investment Corporation, a holding company under the Tata Group, surged by 12%, signaling positive investor sentiment.

This Initial Public Offering is expected to attract significant interest from institutional and retail investors eager to be part of the Tata Group’s financial legacy and Tata Capital’s growth journey.


Conclusion

The Tata Capital IPO represents a pivotal moment for the Tata Group and the Indian financial sector. Beyond regulatory compliance, it symbolizes the group’s commitment to strategic growth and innovation. With a strong track record and ambitious plans, Tata Capital is poised to become a cornerstone in India’s financial landscape.

Investors looking to tap into the growth of India’s financial services industry and the Tata legacy should watch this space closely. The Tata Capital IPO promises to be one of the most significant events in the Indian stock market in 2025.

Summary

The Tata Group plans to launch its second IPO in two decades with Tata Capital going public in 2025, following RBI’s mandate for upper-layer NBFCs to list by September 2025. The IPO, projected to raise ₹15,000 crore ($2 billion), will bolster Tata Capital’s capital base and support expansion. Tata Capital, a flagship NBFC, serves 5.2 million customers across 900 branches, offering products like commercial finance and consumer loans. With strong financial growth, including FY24 revenue of ₹18,178 crore and net profit of ₹3,315 crore, the IPO is expected to generate significant market interest, marking a key milestone for the Tata Group and Indian financial sector.

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