Shares of Tata Investment Corporation surged 7% on February 25 after Tata Capital announced its plans for an Initial Public Offering (IPO) and a ₹1,504 crore rights issue for existing shareholders.
Tata Capital, an unlisted entity of the Tata Group, confirmed that its board has approved the proposal for an IPO. The offering will comprise a fresh issue of shares with a face value of ₹10 each, amounting to ₹23 crore. Additionally, the IPO will include an Offer for Sale (OFS) from certain existing shareholders, though the exact size and details of the selling shareholders have not been disclosed yet.
The OFS will be subject to market conditions, regulatory approvals, and other relevant factors, Tata Capital stated in its filing. Alongside the IPO, the company’s board has also given the nod for a rights issue worth ₹1,504 crore. The record date for the rights issue has been set as February 25, 2025, though details on the issue price and entitlement ratio remain undisclosed.
Once listed, Tata Capital will become the first Tata Group company to debut on the stock market in over 15 months. The last IPO from the group was Tata Technologies in November 2023, which marked the first Tata listing since TCS nearly two decades ago.
Additionally, Tata Capital was recently classified as an upper-layer Non-Banking Financial Company (NBFC) by the Reserve Bank of India (RBI) for the year 2024-25, further solidifying its market presence. The IPO announcement has fueled investor optimism, leading to a sharp rally in Tata Investment Corporation’s stock.
