After Mega Tata Tech Market Debut, Tata Sons Set To Launch Tata Capital IPO

Tata Capital IPO: The Tata Group, a name synonymous with excellence and innovation, has left an indelible mark on India's financial landscape. In this case study, we delve into the remarkable journey of Tata stocks, exploring their rise, pivotal moments, and the factors that have made them a beacon of success in the Indian stock market.

After Tata Technologies, another Tata Group company is eyeing a listing on the bourses but it's not Tata Sons. Over the past few months, the conglomerate¡¯s holding company ¨C Tata Sons ¨C has been all over the news over its mandatory listing by September 2025.

Is Tata Capital going for IPO?

According to ET Now, the largest conglomerate in India, Tata Group, has begun preparing for the Tata Capital IPO while attempting to avoid listing the parent company, Tata Sons.

Tata Sons and Tata Capital are regarded as upper-layer NBFCs under RBI regulations, and they must list shares by September 2025. About 95% of Tata Capital's equity is owned by Tata Sons.

The IPO might be live by the end of this year, if all goes according to plan. In addition, the conglomerate is thinking of giving Tata Capital some of its non-core assets.

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Tata Group intends to conduct an initial public offering (IPO)

To restructure operations and take the business public, the Tata Group intends to conduct an initial public offering (IPO).

After Mega Tata Tech Market Debut, Tata Sons Set To Launch Tata Capital IPO | ET

This will be the first public offering following Tata Technologies, which generated a lot of interest from investors, assuming the plans come to pass. According to multiple sources, there is significant demand for Tata Capital's shares on the unlisted market, where they are trading for more than Rs 1,100.

As the principal financial services organisation of the Tata Group, Tata Capital is a division of Tata Sons, a non-banking financial enterprise.

In addition to operating in a number of business sectors, Tata Capital and its subsidiaries offer a broad range of services in the financial services industry. These services include consumer loans, wealth management, distribution, and marketing of Tata Cards, as well as commercial finance.

In the meantime, Tata Sons is mandated by RBI regulations to list by September of this year. However, the company is prepared to pay back outstanding loans in order to request an exemption from RBI regulations.

Last month, Tata Sons, the parent company of TCS, sold 2.34 crore shares in the subsidiary in a block deal valued at around Rs 9,000 crore.

The proceeds could potentially be utilized to reduce some of Tata Sons' debt, as its FY23 balance sheet indicates borrowings of approximately Rs 20,270 crore. This debt reduction strategy might also help the holding company avoid the necessity of an IPO.

Also Read: After Mega Tata Tech Market Debut, Tata Sons Set To Launch Tata Capital IPO

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