As per the other sources, after various listings of the Tata group companies which was led by N Chandrasekaran, decided to launch an IPO of Tata Capital also.
This firm is one of the main financial advisories of Tata Group and its NBFC(Non-Banking Financial Company). Moreover, this IPO amount is yet to be done and the possible amount could be around Rs 15,000 crore with the fresh issues and OFS(Offer for sale) shares being sold by existing owners.” However, IPO work has started to be launched soon as per the sources. Moreover, meetings of investment banks will be possible soon.
Significantly, TCL will provide shares to TMFL’s shareholders and TML(Tata Motors Limited) will own merged company shares around 4.7%.
Furthermore, the law firm Cyril Amarchand Mangaldas and the investment bank Kotak Mahindra Capital have been chosen as advisors for the project, said a second source
All three individuals mentioned earlier requested to remain anonymous.
Emails sent to Tata Sons, Tata Capital, Cyril Amarchand Mangaldas, and Kotak Mahindra Capital did not receive any reply by the time the article was published.
The article will be updated once these companies respond later.
Tata Capital Financial Services, which merged with Tata Capital in January 2024, is on the RBI’s list.
Moreover, in June, the boards of Tata Motors Limited (TML), Tata Capital Limited (TCL), and Tata Motors Finance Ltd (TMFL) agreed to merge TMFL with TCL. The merger between companies will have happened once it is reviewed and approved by NCLT which is the special court that handles special matters like that.
On 30 September, RBI declared a new system called Scale Based Regulation for NBFC, and 16 companies have been listed in the “upper layer” category. This new system has four categories Base Layer, Middle Layer, Upper Layer, and Top Layer. However upper layer category is specialized by RBI in certain criteria and a scoring system.
About this company
Tata Capital is registered with RBI(Reserve Bank of India) as a significant company in financial advisory which does not take deposits It offers a wide range of products and operates in both wholesale and retail finance.
According to a report by Crisil Ratings, Tata Capital Limited had assets under management of Rs 158,479 crore in 2024 which was more than the previous year’s Rs 119,950 crore respectively. Moreover, Tata Sons owns 92.83% shares of Tata Capital, and the rest of the shares of Tata Companies are held by Tata Sons and other companies connected by the Tata group.
Financially, 6,097 crores were invested in Tata capital by Tata Sons over five years, wherein 2500 crore was in 2019, Rs 1000 crore in 2020, Rs 594 crore in 2023, and Rs 2,003 crore in 2024.
