Mega IPO Alert! Tata Capital IPO Gets Green Signal; Tata Investment Shares Jumps 9%

Tata Capital, the financial services arm of the Tata Group, is set to launch its much-awaited Initial Public Offering (IPO) after securing board approval on Tuesday. The announcement has already triggered a surge in investor interest, with Tata Investment Corporation Limited (TICL) shares rallying almost by 9% in anticipation of the upcoming Tata Capital IPO.

Tata Capital IPO Details

Tata Capital IPO will issue 23 crore new shares as part of its public offering. The IPO will be a fresh issue with a face value of Rs. 10 per equity share as per reports and an offer for sale of the other eligible shareholders. The issue price of the Tata Capital IPO will be announced in due course.

Alongside the IPO, the company has also approved a Rs. 1,504 crore rights issue to enhance its financial position with the record date for the same set to 25th February.

Why is Tata Capital Going Public?

The Tata Group's decision to list Tata Capital is because of the RBI's new listing norms for NBFCs categorized as "upper layer" institutions. Hence, the launching of Tata Capital IPO will fulfill the regulatory mandate but also gain access to more capital for business expansion and investment opportunities.

Stock Market Reaction: Tata Investment Shares Surge

Following the Tata Capital IPO announcement, Tata Investment Corporation shares jumped by 8.75% due to strong market optimism. Tata investment shares are currently trading at Rs. 6230 at the time of writing with a rise of 8.75% since the previous close.
Since Tata Capital IPO is set to be one of the most anticipated listings of 2025, investors are excited for potential value in the Tata Group's financial segment, given the positive performance of its recent IPOs, such as Tata Technologies' blockbuster listing in 2023.

About Tata Capital

Tata Capital Limited, a subsidiary of Tata Sons, was established in 2007 to provide financial solutions to individuals and businesses. The company operates as a diversified non-banking financial company (NBFC) offering a wide range of products, including personal loans, home loans, business loans, wealth management, and infrastructure financing. Tata Sons, the conglomerate's holding company, currently holds a 92.8% stake in Tata Capital as of February 2025.