Shares of Tata Investment Corporation Ltd, the investment company of Tata group, soared nearly 12 per cent in Tuesday's trade amid reports that, after Tata Technologies Ltd, another group company Tata Capital is likely to go public soon.
As per media reports, the work on the issue of the group flagship financial services arm has started and law firm Cyril Amarchand Mangaldas and investment bank Kotak Mahindra Capital have been roped in as advisors for now, Moneycontrol reported as saying. The IPO offering is expected to be as big as Rs 15,000 crore.
The Tata stock climbed 11.83 per cent to hit a high of Rs 7,305 on BSE. It hit a 52-week high of Rs 9,744.40 and low of 4,170. The scrip has jumped 70.43 per cent in 2024 so far and 276 per cent in the past two years.
Tata Capital is a subsidiary of Tata Sons Private Limited -- the principal holding company of the Tata group, which owned 3,47,77,15,784 shares or 92.83 per cent stake in Tata Capital as of March 31. Promoter Tata Sons Private Limited also owns 68.51 per cent stake in Tata Investment Corporation.
The RBI had in the past classified Tata Capital and its parent Tata Sons as Non-Banking Financial Companies (NBFC) with an upper layer distinction. As a result, both companies are mandatorily required to go public by September 2025.
As per the Moneycontrol report, pitches to engage other investment banks will be conducted soon. The IPO is likely to be a combination of primary and secondary issue of shares, the report added.
Tata Capital recently completed a merger involving Tata Cleantech Capital and Tata Capital Financial Services. In August this year, the RBI approved Tata Capital's conversion into an NBFC – Investment Credit Company (ICC) from an NBFC – Core Investment Company (CIC). In October, the RBI okayed the merger of Tata Capital with Tata Motors Finance (TMFL), paving the way for the formation of country's 12th largest non-banking finance company.