Tata Group Eyes for Major IPO in 2025

Tata Group plans a significant initial public offering (IPO) for its financial services arm, Tata Capital, in 2025. The IPO could exceed Rs 15,000 crore. Tata Sons, the main holding company, holds a dominant stake in Tata Capital.

To comply with RBI norms for upper-layer non-banking financial companies (NBFCs), Tata Capital aims to raise substantial funds. Tata Capital has grown significantly, with its assets under management (AUM) reaching Rs 158,479 crore as of October 2024. The company’s profit after tax stands at Rs 1,825 crore.

Moreover, Tata Group has started discussions with investment bankers, including Kotak Investment Banking, to finalize IPO details. The offering is expected to include a mix of primary and secondary share issues. This move follows the successful IPO of Tata Technologies in November 2023, which saw strong investor interest.

Tata Capital’s unlisted shares have already attracted significant market demand, with prices rising over the past year. The company’s loan book size is Rs 1,76,536 crore. Additionally, it serves over 5.2 million customers through an extensive branch network.