Tata Capital Board Approves IPO Plan, Announces ₹1,504 Crore Rights Issue
Tata Capital has announced its board's approval for an initial public offering (IPO), which will include a combination of a fresh issue of 23 crore equity shares and an offer-for-sale (OFS) by existing shareholders. The company did not disclose further details regarding the IPO.
IPO Details
- Fresh Issue: 23 crore equity shares
- Offer-for-Sale (OFS): By existing shareholders
Tata Capital, established in 2007, offers a broad spectrum of loans, ranging from housing to personal finance.
Rights Issue
In addition to the IPO plan, the board has decided to issue shares worth up to ₹1,504 crore on a rights basis to existing shareholders of the company.
First Tata Group IPO Since Tata Technologies
Notably, this IPO will be the first by a Tata Group company since the successful listing of Tata Technologies in 2023.
Compliance with RBI Regulations
This move aligns with the Reserve Bank of India's (RBI) mandate for 'upper layer' Non-Banking Financial Companies (NBFCs) to list within three years of being notified, which is by September 2025. Tata Capital Financial Services, which merged with Tata Capital in January 2024, is included on the regulator's list.
Tata Capital's Financials
As of March 31, 2024, Tata Capital had Assets Under Management (AUM) of ₹158,479 crore, according to a report by Crisil Ratings.
Tata Sons directly owned 92.83 percent of Tata Capital Limited's equity shares as of March 31, 2024, with most of the remaining stake held by other Tata group companies and trusts.
Tata Sons Investment
Tata Sons has infused significant capital into Tata Capital Limited in recent years, totaling ₹6,097 crore over the past five fiscal years. This includes ₹2,500 crore in fiscal 2019, ₹1,000 crore in fiscal 2020, ₹594 crore in fiscal 2023, and ₹2,003 crore in fiscal 2024.
Market Reaction
Following the announcement by Tata Capital, shares of Tata Investment surged 8 percent to trade at Rs 6,218 apiece.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
0 comments:
Post a Comment