Tata Group is gearing up to launch Tata Capital’s initial public offering (IPO) in 2025, following the success of Tata Technologies IPO in 2023. Expected to be valued around Rs 15,000 crore, this could be one of the largest IPOs by the conglomerate, showcasing its robust growth in the financial services sector.
Preparations for the IPO Begin
The groundwork for Tata Capital’s IPO is reportedly underway. Sources indicate that Tata Group has appointed Cyril Amarchand Mangaldas as legal advisors and Kotak Mahindra as investment bank advisors. Plans are also in place to engage more investment banks to ensure smooth compliance with RBI norms for upper-layer non-banking financial companies (NBFCs).
Tata Capital: A Leading Financial Services Provider
Tata Capital, a subsidiary of Tata Sons, operates as a prominent NBFC, serving over 5.2 million customers through its 900 branches. The company offers a range of financial services, including commercial finance, consumer loans, and wealth services. With a loan book size of Rs 1.76 lakh crore and pre-tax revenue of Rs 1,825 crore, Tata Capital stands out as a significant player in the financial sector.
Why the IPO Matters
This IPO marks a crucial step in Tata Group’s strategy to leverage its financial services segment. The listing would not only boost Tata Capital’s market presence but also offer investors an opportunity to engage with a well-established and rapidly growing financial institution.
Future Prospects
As Tata Group progresses with Tata Capital’s IPO plans, it underscores the company’s commitment to strengthening its footprint in the financial sector. The listing is poised to attract significant market interest, driven by Tata Capital’s solid track record and extensive customer base. If successful, this IPO could set a benchmark for future listings within the Tata conglomerate.
