Tata Capital IPO Launch: Everything You Need to Know

TATA CAPITAL

Tata Capital, the financial services arm of the Tata Group, is preparing for an initial public offering (IPO) projected to raise approximately $2 billion (around ₹15,000 crore). This move aligns with the Reserve Bank of India’s (RBI) directive requiring upper-layer non-banking financial companies (NBFCs) to list their shares by September 2025.

Who Is The CEO Of Tata Capital IPO

The CEO of Tata Capital is R. Venkataramanan. He has been with the Tata Group for several years and has held various leadership positions within the group. Venkataramanan currently oversees the operations of Tata Capital, which offers a range of financial services including consumer finance, commercial finance, wealth management, and asset management.

Regarding the Tata Capital IPO, Venkataramanan and other senior executives at Tata Capital will likely play key roles in overseeing the IPO process and ensuring its successful launch.

Key Details:

  • IPO Size and Structure: The offering is expected to include both primary and secondary share sales, aiming to raise about $2 billion.
  • Timeline: Preparations are underway, with the IPO anticipated to launch by mid-2025.
  • Valuation: In the unlisted market, Tata Capital’s shares have seen significant growth, with prices rising from ₹450 in December 2023 to around ₹900 in December 2024. This suggests a valuation of approximately ₹3.5 lakh crore based on the outstanding shares.
  • Advisors: The Tata Group has engaged Kotak Investment Banking to lead the IPO process, with plans to appoint additional bankers by January 2025.

What is the share price of Tata Investment Capital?

As of December 26, 2024, at 1:01 PM IST, Tata Investment Corporation Limited’s (TICL) share price is ₹6,874.

Key Financial Metrics:

  • Market Capitalization: Approximately ₹34,780 crore.
  • Price-to-Earnings (P/E) Ratio: 94.3.
  • Price-to-Book (P/B) Ratio: 0.95.
  • Dividend Yield: 0.41%.

Tata Investment Corporation is a non-banking financial company (NBFC) primarily engaged in long-term investments across various sectors, including banking, cement, chemicals, and more.

Tata Capital IPO parent company

The parent company of Tata Capital is Tata Group, one of India’s largest and most well-known conglomerates. Tata Group is a multinational conglomerate with businesses in various sectors, including automotive (Tata Motors), information technology (Tata Consultancy Services), steel (Tata Steel), chemicals, consumer products, and financial services, among others.

It is the financial services arm of the Tata Group and offers a wide range of products and services, including commercial finance, consumer loans, wealth management, and investment banking.

Tata Capital Growth

Here’s an overview of Tata Capital’s growth in terms of its business and financial performance based on available information. Since Tata Capital is not a publicly listed company, detailed financial metrics like EPS, ROE, or specific share price growth are not available. However, we can outline its general growth trends and expansion.

Tata Capital Growth Overview:

MetricDetails
Customer BaseOver 5.2 million customers as of 2024.
Branch NetworkMore than 900 branches across India.
Loan Book GrowthCAGR of 15-20% over the last 5 years (approximate).
ProfitabilitySignificant YoY growth in profitability; Net profit for FY23 crossed ₹1,500 crore.
Assets Under Management (AUM)₹1.2 lakh crore (2024 estimate).
Digital TransformationEnhanced customer experience with digital platforms, growing adoption.

Highlights of Tata Capital’s Growth:

  • Loan Portfolio Expansion: Focus on retail, SME, and infrastructure financing has driven steady growth.
  • Diversification: Growth in product offerings, including wealth management, investment banking, and insurance.
  • Digital Initiatives: Significant investment in technology, leading to increased efficiency and customer satisfaction.
  • IPO Readiness: Tata Capital is gearing up for its IPO by mid-2025, further showcasing its growth and market confidence.

These metrics are indicative of Tata Capital’s steady performance and its position as a leading financial services provider in India. For specific, updated figures or a detailed report, the company’s annual report or official disclosures would provide comprehensive insights.

Tata Capital

Key Facts about Tata Capital

CategoryDetails
Parent CompanyTata Sons
Established2007
HeadquartersMumbai, Maharashtra, India
CEOR. Venkataramanan
Customer BaseOver 5.2 million
Branch NetworkMore than 900 branches across India
Assets Under Management₹1.2 lakh crore (2024 estimate)
Key SubsidiariesTata Capital Financial Services Limited (TCFSL), Tata Securities, Tata Asset Management, etc.

Product and Service Offerings

Tata Capital offers a diverse range of financial products catering to individuals, SMEs, and corporations:

(1) Retail Lending:

  • Home Loans
  • Personal Loans
  • Car Loans
  • Two-Wheeler Loans

(2) Corporate Finance:

  • Working Capital Finance
  • Term Loans
  • Project Finance

(3) Wealth and Asset Management:

  • Tata Mutual FundsPortfolio
  • Management Services

(4) Investment Banking:

  • Advisory services for M&A and fundraising

(5) Leasing and Infrastructure Financing:

  • Equipment Leasing

(6) Insurance:

  • Life and General Insurance (in partnership with Tata AIA and Tata AIG)

Key Milestones

  • 2007: Established as a financial services company.
  • 2011: Achieved ₹10,000 crore in loan disbursements.
  • 2018: Launched Moneyfy, its digital investment platform.
  • 2024: Announced plans for a $2 billion IPO.

Future Outlook

  • IPO Plans: The upcoming IPO is expected to raise ₹15,000 crore, positioning Tata Capital for further expansion.
  • Digital Growth: Continued investment in digital transformation to enhance customer experience and operational efficiency.
  • Geographical Expansion: Plans to expand its reach in rural and semi-urban markets to tap into new customer segments.

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