Tata Group Stocks Surge Amid Tata Capital IPO Buzz

On December 24, 2024, Tata Group stocks, including Tata Investment Corporation, Tata Technologies, and Tata Motors, experienced significant gains on the BSE. Reports that Tata Group is nearing the launch of an initial public offering (IPO) for its financial services arm, Tata Capital, caused this surge. Investors saw Tata Investment Corporation’s shares rise by as much as 12%. Tata Technologies gained 4%, and Tata Chemicals, Tata Motors, and TCS also saw gains during the session.

Tata Group is discussing the Tata Capital IPO launch with advisors for next year. The IPO is expected to be a large-scale deal exceeding Rs 15,000 crore. Tata Sons, the main holding company of Tata Group, holds a dominant stake in Tata Capital. The surge benefited Tata Motors due to its stake in Tata Capital.

The IPO complies with RBI norms for upper-layer NBFCs. In September 2022, RBI categorized Tata Capital as an upper-layer NBFC. Tata Capital’s assets under management (AUM) grew significantly to Rs 158,479 crore in March 2024.