Tata Group is in the news due to its most-anticipated Initial Public Offering of Tata Capital and Tata Technologies. After almost two decades of Tata Consultancy Services' IPO, the group is all set to launch Tata Capital IPO. As per the sources, the company aims to get public in 2025 and is also looking for a similar valuation to Mukesh Ambani's Jio Financial Services.
It is good news for all those investors who are waiting for Tata Capital's IPO. However, you might also have a question as to why the company decided to launch its IPO in 2025. Don't worry; we will share the possible reasons why Tata Capital made this decision.
Tata Capital Ltd May Get Publicly Listed In 2025
Tata Capital, which is an RBI-registered non-deposit-accepting core investment company, announced that it can make its stock exchange market debut in 2025. As per the article of India Today, this move was made by the Tata Group to restructure its operations and bring its non-financial arm to the public. The company is expected to appoint investment bankers to facilitate the launch of its most anticipated IPO.
The good news is that Tata Capital was recently classified by the Reserve Bank of India(RBI) as an upper-tier non-banking financial company, which entails higher regulatory compliance. As per the RBI guidelines, upper-tier NBFCs must be listed within three years of their classification. Due to this classification, Tata Sons must also consider its own IPO, potentially becoming India's largest-ever IPO.
Possible Reasons Behind Tata Capital's Decision To Launching An IPO In 2025
Amid the various market concerns and economic slowdown, various big companies like boAt and Mama Earth postponed their IPOs. However, Tata Capital decided to go public in 2025.
The company's business model is considered profitable in the B2B segment, which allows it to compete with other top companies. But the main question here is why Tata Capital decided to get listed within the next two years. With this move, various things might be affected, and Tata Capital share price in the unlisted share market is one of them. There might be various reasons behind this decision of the company, including:
Restructuring Operations
Tata Group gained the trust over the years and emerged as a profitable and reliable one. Through Tata Capital, the group aims to restructure its operations and bring its non-bank lending arm into the stock market. Before that, the group decided to merge its two subsidiaries, Tata Cleantech Capital and Tata Capital Financial Services Ltd, into Tata Capital Ltd, for which it got approval from the Competition Commission of India. By launching an IPO, Tata Capital will facilitate its plan of restructuring operations.
Comply RBI Guidelines
As we mentioned in the previous section, Tata Capital needs to be listed within three years of classification as per RBI guidelines. Since it is classified as an upper-tier NBFC along with its parent company, Tata Sons, it is required for Tata Capital to launch its IPO in the next three years. To avoid getting blacklisted by the RBI, the company needs to make this decision.
Public Investment
Tata Capital is moving towards business expansion for which it targets small towns and drives its predicted growth. To meet its business growth goals, the company is looking for public investment options via its IPO. A plan for getting publicly listed in 2025 will aid Tata Capital with much-needed investment in the future.
Should Investors Wait To Invest In Tata Capital Till Its IPO Launch?
Most investors ask - Should I wait till the IPO to invest in Tata Capital? The answer is no, you can invest in Tata Capital right now via its unlisted shares. Recently, the company emerged as profitable and recorded a 46% growth in its PAT compared to the last financial year. We can expect Tata Capital to launch its IPO at the beginning of 2025, allowing retail investors to buy Tata Capital IPO shares.
But that doesn't mean you can't invest in the company right now. Currently, Tata Capital unlisted shares are performing well and showed positive performance. In terms of financials, the company provides investors with high returns on investment. Apart from this, Tata Capital's share price also increased in the last three months, which is a positive sign for investors.
If you want to buy unlisted shares of Tata Capital or other companies, Stockify is the best platform for you. Here, you will get updated Tata Capital stock price and every essential information about it. We have trending unlisted companies on our website in which you can invest and earn good returns in the long run. To start trading in pre-IPO shares, contact us now!
FAQs
1- When will Tata Capital get listed on the stock market exchanges?
As per the information shared by the Tata Group, its financial arm might get listed in 2025, for more information regarding Tata Capital IPO, subscribe to Stockify.
2- What are the right issues of the Tata Capital IPO?
In the DRHP filed by Tata Capital, it announced a right issue at Rs 162 per share. This move by the company created an urgency for re-evaluating Tata Capital share price in the unlisted share market.
3- What is the current Tata Capital share price in India?
As per the fresh market data, the current Tata Capital stock price in India right now is Rs 435 per equity share. To check the unlisted share price regularly, subscribe to Stockify.
4- Can retail investors buy Tata Capital IPO shares in the future?
Yes, retail investors can buy IPO shares of Tata Capital in the future with the help of reliable trading platforms. For eligibility criteria, connect with our experts today.
5- Is Tata Capital a profitable company?
Yes, Tata Capital is the profitable company which recorded a Profit After Tax(PAT) of Rs 1648 crore in FY 2023.
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