Tata Capital Unlisted Shares
Tata Capital plans IPO, expanding board and merging subsidiaries to go public
Hindustan Times
2 min read
Tata Capital plans for an IPO in 2025; the IPO process is to kickstart in March 2024, with the appointment of investment bankers, targeting adding members to its board.
Justification
Tata Capital, upon being classified as an ‘upper layer’ Non-banking Financial Company (NBFC), according to which the unlisted companies must complete their listing within three years of receiving this notice.
RBI tagged the company as upper layer NBFC in September 2022, the implication of which company needs to be listed by September 2025. (3 year duration)
The company is in the final stages of merging some crucial subsidiaries, awaiting RBI approval by 2023, like Tata Capital Financial Services Ltd, Tata Capital Housing Finance Ltd, Tata Cleantech Capital Ltd, Tata Securities Ltd, and Tata Capital Pte. Ltd, among others.
This IPO might reduce promoter ownership by 10-20%, making it one of the biggest IPOs ever.
Tata Capital Financial Services, another Tata company identified with the same tag by RBI, is merging with Tata Sons.
Tata Sons is the Holding company for the entire Tata Group, with Tata Trusts holding a 66% stake and Shapoorji Pallonji Group holding an 18.4% stake in Tata Sons.
Tata Capital is valued at Rs 1.5 Trillion, with its shares trading at Rs 425 in the grey market.
The IPO by Tata Group company serves as a gateway to have a part in the company’s earnings by being its shareholder.
The merging of various companies under Tata Capital will lead to a combined increased pool of resources & capital for future operations.
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