Another company of the Tata Group is going to be listed on the stock market. Tata Capital has submitted its draft to the Securities and Exchange Board of India (SEBI). After the listing of Tata Technology in November 2023, this is the first time that the news of an IPO has come from the Tata Group Company. According to media reports, Tata Capital has confidentially filed a draft red herring prospectus (DRHP) with SEBI.
The IPO size of Tata Capital is around Rs 15 thousand crore. Under this IPO, new shares will be issued, and at the same time, Tata Sons will also sell some of its stake in the company through Offer for Sale (OFS). Tata Capital is a non-banking financial services company (NBFC). In the meantime, there were also reports that Tata Group does not want to bring an IPO of this company, but RBI’s rule is overshadowing its desire. Actually, according to the rules of the Reserve Bank, it is mandatory for the upper-layer NBFC to be listed within 3 years. Tata Capital falls in this category, and hence it will also have to bring an IPO.
When will the IPO come?
When will the IPO of this Tata Group company come, its date will be finalized only after the approval of SEBI, but the company will have to bring IPO before September this year. RBI had issued a new circular regarding the upper layer in September 2022, this three-year period is ending in September 2025. In such a situation, Tata Capital will have to bring IPO before that. Let us tell you that Tata Sons has a 92.83% stake in Tata Capital.
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How is the financial health?
Talking about the financial health of Tata Capital, in the financial year 2024, the company achieved a revenue of Rs 18,178 crore, which is 34% more on an annual basis. During this period, the company’s loan book also jumped 40% year-on-year to cross Rs 1 lakh crore and profit stood at Rs 3,150 crore. While in the first half of FY25, Tata Capital’s profit grew 21% year-on-year to Rs 1,825 crore. Tata Capital offers a variety of services in the finance sector.
Many companies of the Tata Group are currently listed in the stock market. The last IPO from the group came in 2023. The IPO of Tata Technologies received a tremendous response. Other major listed companies of the group include Tata Motors, Trent, Tata Steel, Tata Chemicals, TCS, Tata Power, Tata Consumer Products, Tata Elxsi, Tata Investment Corporation, Voltas, Titan Company, Tata Communication and Nelco etc. According to the information available on the Tata Group website, a total of 16 companies of the group are listed in the stock market.
How do you earn?
Investors in the stock market see IPOs as a great opportunity to earn money. Last year, the IPO market was very buzzing and investors also made bumper earnings. However, this year, keeping in mind the sluggishness of the market, not many IPOs have come so far. Tata Group’s name is associated with Tata Chemicals, the company’s financial health is strong, so its IPO can get a good response. This means that there can also be scope for investors to earn money.
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