Tata Investment share price zooms 10% after Tata Capital’s IPO move

Tata Investment share price zoomed 10 per cent in Tuesday's trading session to ₹6,220.75 on the National Stock Exchange (NSE) after Tata Capital approved plans for an initial public offering (IPO).

Tata Capital, a non-banking financial services (NBFC) company, operates as a subsidiary of Tata Sons, the group's holding company. Currently, Tata Investment Corporation (TICL) holds over a 2% stake in Tata Capital, while its parent company, Tata Sons, owns 93% of the NBFC.

Tata Capital IPO Details

Tata Capital's IPO will include a fresh issue of shares with a face value of ₹10 each, amounting to ₹23 crore. The rest of the offering will comprise an offer for sale (OFS) by select existing and eligible shareholders.

The size of the OFS and the identity of the selling shareholders in the IPO have not yet been revealed. According to Tata Capital's filing, the OFS will depend on market conditions, necessary approvals, regulatory clearances, and other relevant factors.

Furthermore, Tata Capital's board has approved a ₹1,504 crore rights issue for existing shareholders, with the record date set for February 25, 2025.

Tata Capital has yet to finalise the rights issue price or the entitlement ratio.

Upon completion, Tata Capital will be the first Tata Group company to debut in the stock market in over 15 months. The last Tata Group firm to list on exchanges was Tata Technologies, in November 2023, marking the group’s first IPO since TCS nearly two decades earlier.

Recently, the Reserve Bank of India (RBI) classified Tata Capital as an upper-layer Non-Banking Financial Company (NBFC) for 2024-2025. To comply with RBI regulations, the company must go public by September 2025.

Tata Investment Share Price Trend

Tata Investment shares rallied as much as 10.32 per cent to hit the day's high of ₹6343.80 apiece. As of 11 am, the scrip was trading 8 per cent higher at ₹6205.55 apiece.

Tata Investment stock has rallied over 588.12 per cent in the last five years. However, the stock has declined over 12 per cent in a year but gained over 2 per cent in six months.

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