Tata Capital Ltd’s Possible Business Expansion Plans For The Next 5 Years: What It Holds For Investors?

Tata Capital, a subsidiary of Tata Son Limited, is known for its customer-centric financial services. The company caters to the diverse needs of its corporate, retail, and institutional clients directly or through its subsidiaries. Over the years, Tata Capital Ltd remained among India’s top financial service providers and grew rapidly.

It is registered as the NBFC with the Reserve Bank Of India(RBI) and operates through its different business segments, which include financing, investing, etc. It is a privately-held company limited by shares and allows investors to buy Tata Capital unlisted shares. Before making an investment decision, knowing the possible expansion plan Tata Capital has for the future is crucial. In this blog, we will discuss what  Tata Capital Ltd holds for the future. 

About Tata Capital Ltd

Tata Capital operates as a registered non-deposit-accepting core investment company. It targets retail, corporate, and institutional customers through its wide range of services. The company was founded in 2007 by Ratan Tata and is considered the financial services arm of Tata Group. 

It has an extensive portfolio of investment products and services, including customer loans, investment banking, credit cards, private equity, treasury advisory, and more. The company was incorporated on 19 November 2010 and it is headquartered in Mumbai, Maharashtra. 

Retail investors can only invest in the company via Tata Capital Ltd unlisted shares.

Product Portfolio Of Tata Capital Ltd

As the one-stop financial service partner, Tata Capital Ltd caters for the various needs of its retail, corporate, and institutional clients via its wide range of products and services. The product portfolio of the company is as follows:

  • Home Loans
  • Business Loans
  • Personal Loans
  • Institutional Distribution
  • Private Equity
  • Tata Cards
  • Leasing Solutions
  • Cleantech Finance
  • Other Consumer Loans
  • Loans Against Property
  • Wealth Product Distribution
  • Commercial & SME Finance

The company offers its financial products and services directly or via its subsidiaries. 

Different Subsidiaries Of Tata Capital Limited

Tata Capital has various subsidiaries through which the company actively supports the needs of the customers of rural and urban areas. Each subsidiary offers specific services and supports its extensive range of portfolios. Here are the details of Tata Capital Ltd’s subsidiaries:

Tata Capital Finance Services Ltd

It provides various financial services like commercial finance, corporate finance, rural finance, and leasing.

Tata Capital Housing Finance Ltd

The main products and services of Tata Capital Housing Financing Ltd are home loans, affordable housing, and construction finance.

Tata Cleantech Capital Ltd

Through Tata Cleantech Capital Ltd, the company provides financing and advisory services to the renewable sector.

Tata Securities Ltd

Tata Capital Ltd uses this subsidiary to offer investment banking services, third-party financial products, and the distribution of mutual funds. 

Tata Capital Ltd Possible Business Expansion Plans

The company has boosted its business operations amid the news of Tata Capital IPO, which might launch  next year. Investors can only buy Tata Capital pre-IPO shares traded in the grey market. 

However, the company does not publicly share the exact business plan for the next five years. Since Tata Technology is planning to bring its IPO to raise funds through the initial sale of its listed shares, there is much speculation about the company’s growth in terms of products.

Expanding Its Branches

In the next five years, Tata Capital Ltd’s major focus will be adding new branches while targeting tier II and III markets. According to the sources, the company has plans to expand its branches up to 350 by the end of this year. In the last fiscal year, Tata Capital Ltd added 60 new branches and expanded its network to over 250. 

Sarosh Amaria, Managing Director of Tata Capital Financial Services Ltd, clarifies, “We believe a branch plays an important role in strengthening our relationship with our customers and helps us curate financial solutions for them. Also, our expansion in tier II and tier III markets aims to facilitate inclusive growth in the country.”

Evaluate Its Subsidiary

Tata Capital is continuously evaluating the consolidation of its subsidiaries as the precursor of the potential public issue of 2025. The company plans to meet the regulatory framework of its subsidiary, Tata Capital Financial Services, as part of the Reserve Bank of India’s Scale-Based Regulations (SBR).

In September 2022, the central bank added Tata Capital’s subsidiary to its list of non-banking lenders in the upper layer under the updated SBR. However, it will be the decision of the board whether to list Tata Capital Financial Services separately or merge under the holding company. This subsidiary is expected to be a significant part of its business expansion plan for the next five years.

Targets New Small Towns

In the future, Tata Capital Ltd plans to target the new small towns to expand its customer base. During this, the company has plans to meet the needs of people in the village by using digital tools to make transactions and decision-making faster. 

In addition, the company also plans to participate in government-based initiatives to streamline its services. There are rumours that Tata Capital may collaborate with third-party service providers to target the new small towns.

Launch Its IPO

As a part of the expansion strategy, Tata Capital Ltd has plans to launch its Initial Public Offering (IPO) of approximately Rs 20,000 crore. The major goal behind it is to strengthen and expand its retail book. However, there is no clarification from the company’s side about the exact launch date of Tata Capital IPO and the price of the listed stock.

According to the sources, Tata Neu will help the company to onboard new customers. It is expected that retail investors who want buy Tata Capital Ltd unlisted shares will be able to pre-register themselves for the Tata Capital shares. So it is an excellent opportunity for the retail investors who invested in Tata Capital pre-IPO shares. However, you must wait for an estimated Tata Capital share price in BSE and NSE.

Details Of Tata Capital Ltd Unlisted Shares

Tata Capital Ltd unlisted shares are actively traded in the grey market. The performance of its shares remained positive in the last few years. Regarding growth, the price of Tata Capital pre-IPO shares increased from Rs 467 to Rs 509 per share in the last six months. It is expected that the Tata Capital stock price is expected to touch the price point of Rs 650 in the coming years. Here are the details of Tata Capital Ltd unlisted shares:

  • Total Availability of Shares: 100-200 shares
  • Face Value: Rs 10 per equity
  • ISIN: INE976101016
  • Current Value of Unlisted Share: Rs 600 per share

The financial details of the Tata Capital for the financial year 2021-22 are as follows:

Financial DetailsFY 21-22FY 22-23
RevenueRs 10,253 croreRs 13,637
Profit After Tax (PAT)Rs 1801 croreRs 2946 crore
Net WorthRs 11,713 croreRs 16,959 crore
Book Value33.8248.36
FV1010
Share346.3350.7

The company’s financials clearly show its growth from FY 21-22 to FY 22-23. Tata Capital Ltd share price today is Rs 620, which depends on the company’s current performance.

Invest In Tata Capital For Long-Term Benefits

Regarding investment, choosing the company based on its past and current performance is best. Tata Capital Ltd seems to have a bright future as its business expansion plans are expected to bring huge profits to the company and its investors.

You can buy Tata Capital Ltd unlisted shares with the help of Stockify. Here you can access its updated share price and year-wise financial data. We are the best-unlisted shares brokers in India, with years of experience helping  investors pick the right pre-IPO stocks. To buy unlisted shares, connect with us today!

 

FAQs

1- What Is The Business Model Of Tata Capital Ltd?

The business model of Tata Capital Ltd includes its range of services and investment products like portfolio management, mutual funds, fixed deposits, private equity, and Venture Capital Funds.

2- How Can I Invest In Tata Capital Ltd?

You can invest in the company via Tata Capital Ltd unlisted shares. To buy unlisted shares of Tata Capital Ltd, connect with us.

3- How To Check The Updated Price Of Tata Capital Unlisted Shares?

You can check the updated share price of Tata Capital Ltd pre-IPO shares on Stockify. Our team updates the unlisted shares price based on recent market data.

4- What Is The Future Business Expansion Plan Of Tata Capital Ltd?

As per the report, Tata Capital Ltd is all set to raise Rs 20,000 crore for its retail business expansion. For getting future updates, subscribe to Stockify.

5- What Is The Current Price Of Tata Capital Ltd Unlisted Shares?

Today’s Tata Capital Ltd share price is Rs 600, depending on factors like the company’s current performance, market condition, etc.

Table of Contents

Tata Capital has various business plans to meet the ever-growing needs of its customers in the next five years.

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