Tata Investment Surges 5% as Tata Group Firm Plans IPO

Tata Investment Corporation, a key stakeholder in multiple Tata Group entities, emerges as a major indirect beneficiary of the upcoming IPO

Tata Investment Corporation Ltd (TICL) Shares surged 5 per cent to an intraday high of Rs 6,231 on the BSE on March 4, following news of Tata Capital’s planned initial public offering (IPO). This IPO, potentially India’s largest offering in 2024, is targeting a valuation of approximately $11 billion.

As an investment arm of the Tata Group, TICL holds stakes in various Tata companies, making it a key beneficiary of group-wide developments. With a 2 per cent stake in Tata Capital, the anticipated IPO is a potential value-unlocking event for the conglomerate’s financial services portfolio.

The stock of Tata Investment Corporation witnessed a sharp rise during early trading hours, touching Rs 6,235 on the National Stock Exchange (NSE), reflecting a 5.09 per cent jump. At 9:30 AM, shares were up 4.41 per cent, trading at Rs 6,178.5 per share.

Investor sentiment remained upbeat as reports suggested that Tata Capital’s IPO could raise to $2 billion, though the final terms are still being deliberated. If materialized, this offering would be a milestone in India's capital markets.

Last week, Tata Capital's board approved an IPO comprising a fresh issue of 23 crore equity shares with a face value of Rs 10 each, along with an offer-for-sale by select existing shareholders. The company emphasized that the IPO remains subject to regulatory clearances and market conditions.

As per Reserve Bank of India (RBI) regulations for “upper layer” non-banking financial companies (NBFCs), Tata Capital must be listed on the stock exchanges by September 2025. The company and its subsidiaries operate in various financial service segments, including consumer loans, wealth management, and the distribution of Tata Cards.

Tata Investment Corporation, which holds a significant stake in Tata Sons (the parent entity of Tata Capital), stands to gain from the IPO’s success. Since TICL’s portfolio primarily comprises investments in Tata Group companies, any positive developments within the conglomerate tend to reflect in its valuation.

With Tata Capital’s IPO in the pipeline, investor focus remains on further regulatory approvals and pricing details. As the offering progresses, its impact on Tata Investment and other Tata Group stocks will be closely monitored.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.