Following the success of Tata Technologies IPO in 2023, Tata Group is preparing to launch the initial public offering (IPO) of Tata Capital in 2025. Expected to be valued at around Rs 15,000 crore, it could be one of the largest IPOs floated by the group. Its strong growth in the financial services sector.
IPO preparations begin
Groundwork is reportedly underway for Tata Capital’s IPO. Sources reveal that Tata Group has appointed Cyril Amarchand Mangaldas as legal advisor and Kotak Mahindra as investment bank advisor. There are also plans to include more investment banks to ensure smooth compliance with RBI norms for upper tier non-banking financial companies (NBFCs).
Tata Capital: A leading financial services provider
Tata Capital, a subsidiary of Tata Sons, operates as a leading NBFC, serving over 5.2 million customers through its 900 branches. The company provides a range of financial services including commercial finance, consumer loans and money services. With a loan book size of Rs 1.76 lakh crore and pre-tax revenues of Rs 1,825 crore, Tata Capital stands as a significant player in the financial sector.
Why does IPO matter?
This IPO is an important step in the Tata Group’s strategy to leverage the financial services sector. The listing will not only enhance Tata Capital’s market presence but will also provide investors an opportunity to associate with a well-established and fast-growing financial institution.
future prospects
As the Tata Group moves ahead with the IPO plans of Tata Capital, it underlines the company’s commitment to strengthening its footprint in the financial sector. The listing is set to attract significant market interest given Tata Capital’s solid track record and wide client base. If successful, this IPO could set a benchmark for future listings within the Tata Group.
