Established in 2007, Tata Capital is a leading financial service-providing company. The company is a part of the famous conglomerate Tata Group. Tata Capital is a customer-centric, one-stop financial solution-providing company catering to the diverse needs of customers directly via its subsidiaries. The company has been in the limelight for merging with its two subsidiaries. If you have been planning to invest in Tata Capital unlisted shares, this blog is for you. Here we will walk you through everything about Tata Capital’s merging plan with its two Subsidiaries Tata Cleantech Capital and Tata Capital Financial Services, the merger impact on Tata Capital unlisted share price, and the vision behind the merger. So, without much ado, let’s talk about it.
Tata Capital Merging Plan With Its Subsidiaries
Tata Capital, the renowned holding company of Tata Group, is all set to consolidate its group subsidiaries with recent board approval. After finalising its listing plans to meet the revised scale-based regulation (SBR) of the Reserve Bank Of India, this decision came from the company. Tata Capital subsidiaries, including Tata Capital Financial Services and Tata Cleantech, will merge with the company.
In August 2023, the fair trade regulator Competition Commission of India (CCI) approved the merger of Tata Cleantech Capital and Tata Capital Financial Services with Tata Capital Limited. Both the subsidiaries of Tata Capital Ltd are RBI-registered non-deposit accepting non-banking financial companies.
Tata Capital Ltd is an RBI-registered non-deposit-accepting core deposit company holding investments in its subsidiaries. Both subsidiaries are engaged in lending and offering plenty of services and products in the financial sector.
The Vision Behind The Merger Plan
Tata Capital acts as the umbrella organisation for the three leading businesses, Tata Capital Housing Plan, Tata Capital Financial Services, and Tata Cleantech Capital, along with its three other investment and consulting businesses Tata Capital Singapore, Tata Securities, and Private Equity. The vision behind Tata Capital to merge with its two subsidiaries is to meet the revised regulatory framework as part of the Reserve Bank Of India’s scale-based regulations. According to Tata Capital, “The merger will lead to the creation of a unified entity with a wider and stronger capital and asset base, having a greater capacity for conducting its operations more efficiently and competitively.”
The merger leads back to September 2022, when RBI added Tata Capital Financial Services to its list of non-bank leaders in the upper layer under scale-based regulations. RBI did this because it had to implement a board-approved policy for adopting the applicable enhanced regulatory framework and mandatory list within three years of the central bank’s classification as an upper-layer non-bank lender. However, the merger will need approval from the National Company Law Tribunal (NCLT) and the Reserve Bank of India (RBI), among other significant bodies.
How Will Merger Affect Tata Capital Unlisted Share Prices?
Often companies decide to merge or combine with their subsidiary or other company to form a robust entity in one form. There are multiple reasons a company merges with other companies, such as global outreach, market share, reduced competition, etc. Further, the impact of the merger on Tata Capital unlisted share price would depend on multiple factors, which include:
- The terms of the merger
- Valuation of the companies involved
- The strategic approach behind the merger
- The broader market conditions
However, unlisted shares are not traded directly on the public stock exchanges, and their prices are not transparent as publicly listed shares and are traded through private transactions. Also, the valuation of unlisted shares depends upon various factors such as financial performance, growth, industry trends, and market segments. As Tata Capital decided to merge to build a robust capital base, it would potentially have a positive impact on Tata Capital unlisted share price.
Tata Capital IPO Highlights
Every company wants to expand its business and services in the market, and the companies which are not listed on the stock exchange do so by releasing their IPO. So as a part of its expansion strategy, Tata Capital is also planning to launch its Initial Public Offering (IPO) of approximately 20,000 crore. The major vision behind the launch of the IPO is to enhance its retail book. Once the company releases its IPO, Tata Capital share price BSE will surely boost in the market. Undoubtedly, it is a golden opportunity for potential investors to make early investments in Tata Capital unlisted shares and earn a high return on their investment.
Why Invest In Tata Capital Unlisted Shares?
Tata Capital is a highly renowned company of Tata Group conglomerate. The company is renowned for its financial services, which work on the basis of trust and customer-centricity. As the financial service partner, the company widens its spectrum for retail, institutional, and corporate customers. In FY 21-22, the company earned Rs. 10,253 crore in revenue as opposed to Rs. 9985 crore in FY20-21. Profit After Tax (PAT) also increased from Rs. 1245 crore in FY20-21 to Rs. 1801 crore in FY 21-22. The financials of the company clearly shows that investing in Tata Capital unlisted shares will be fruitful for all potential investors who want to expand their investment portfolio and reap high profit in the future.
Benefits Of Investing In Tata Capital Unlisted Shares
There are many benefits you can reap by early investing in Tata Capital unlisted shares. The benefits include:
Early Investment Opportunity
Tata Capital is not listed on the stock exchange, so it still needs to release its IPO with SEBI. So, this is an opportunity for retail investors to buy Tata Capital unlisted shares before it goes public to secure a high return on the investment.
Tata Capital is a renowned company that offers an opportunity to people to manage their financial risks by diversifying their investment portfolios. So, rather than investing in traditional methods like stocks and bonds, Tata Capital pre-IPO stocks are a golden way to diversify your investment portfolio.
Long-term Investment Strategy
There is no doubt that investing in Tata Capital unlisted shares brings you a long-term investment opportunity in the future. So, if you invest in the unlisted shares of Tata Capital, you will be able to make long-term financial goals and objectives.
Part Of A Growing Company
Tata Capital is a highly renowned company and has been performing well since its inception. If you want to be a part of such a promising company,you can buy its unlisted shares and secure high ROI. So, investing early could be an opportunity for you to secure a high return. You may want to know about Tata Capital unlisted share price to make your investment decision; count on Stockify today.
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Frequently Asked Questions
- Why should I invest in Tata Capital?
Ans. Tata Capital is a renowned company offering financial services to people. The company is a part of the Tata Group conglomerate, so investing in this company will be highly beneficial for you.
- What is Tata Capital unlisted share price?
Ans. Tata Capital pre-IPO stocks are available at Rs. 540. However, the prices keep changing due to market trends and the company’s performance.
- Has Tata Capital filed for IPO with SEBI?
Ans. No, Tata Capital hasn’t filed for an IPO with SEBI. In the future, the company may plan to go public so investors can make early investments in real potential benefits on their investment.
- How to check the daily price of Tata Capital unlisted share price?
Ans. At Stockify, we regularly update the unlisted share price of all the pre-IPO companies listed on our website. Our stock brokers keep a keen eye on market trends and update prices. So, stay tuned with us.
- How to buy and sell pre-IPO stocks in India?
Ans. You can count on Stockify to buy and sell Tata Capital pre-IPO stocks and other unlisted share companies in India. You can connect with expert brokers today.