Tata Capital IPO: A Comprehensive Guide for Investors
Introduction
The much-anticipated Tata Capital IPO is slated for 2025, making it a significant milestone for the Tata Group’s financial services arm. Following the success of Tata Technologies’ IPO, Tata Capital aims to raise around ₹15,000 crore, adhering to RBI regulations for NBFCs. This article delves into the IPO’s details, its financial implications, and what it means for investors.
Key Highlights of Tata Capital IPO
- IPO Size and Structure
- Estimated IPO size: ₹15,000 crore (~$2 billion).
- Mix of primary and secondary share offerings.
- Largest IPO from the Tata Group to date.
- Why the IPO?
- Compliance with RBI’s mandate for NBFCs to go public by September 2025.
- Capital infusion to support expansion and enhance Tata Capital’s financial base.
- Tata Capital’s Business Overview
- Operates as a non-banking financial company (NBFC).
- Services: Consumer loans, wealth management, commercial finance, and Tata Cards distribution.
- Customer base: 5.2 million.
- Nationwide presence: Over 900 branches.
- Financial Performance
- FY 2023-24 Revenue: ₹18,178 crore (34% YoY growth).
- FY 2023-24 Net Profit: ₹3,315 crore (12% YoY growth).
- Loan book size as of October 2024: ₹1,76,536 crore.
- Advisors Appointed
- Kotak Mahindra Capital: Investment Bank.
- Cyril Amarchand Mangaldas: Legal Advisor.
- Additional advisors expected soon.
Anticipation and Market Impact
The announcement of the Tata Capital IPO has already stirred market excitement. Shares of Tata Investment Corporation surged by 12%, reflecting investor optimism. With Tata Capital’s robust financials and wide-ranging services, the IPO is expected to attract substantial interest from retail and institutional investors alike.
FAQs For Tt
1. When is the Tata Capital IPO expected?
The Tata Capital IPO is likely to launch in 2025, in compliance with RBI regulations for NBFCs.
2. What is the size of the Tata Capital IPO?
The IPO is expected to raise ₹15,000 crore, making it the Tata Group’s largest offering to date.
3. Why is Tata Capital going public?
The IPO is driven by RBI’s requirement for upper-layer NBFCs to list by September 2025 and to bolster Tata Capital’s capital base for growth.
4. Who are the advisors for the IPO?
Kotak Mahindra Capital and Cyril Amarchand Mangaldas are key advisors, with more expected to join.
5. How has Tata Capital performed financially?
For FY 2023-24, Tata Capital reported a revenue of ₹18,178 crore (34% YoY growth) and a net profit of ₹3,315 crore (12% YoY growth).
6. What services does Tata Capital offer?
Tata Capital provides consumer loans, commercial finance, wealth management services, and distribution of Tata Cards.
Conclusion
The Tata Capital IPO is a golden opportunity for investors to be part of a leading NBFC’s growth journey. With strong financials, a vast customer base, and market anticipation, the IPO promises to be a landmark event in 2025. Stay tuned with Tap Invest for the latest updates and insights on IPOs and other investment opportunities.
