Biggest IPO Of Tata Coming Soon? Tata Group Likely To Launch Rs 15,000 Crore Of This NBFC Company In 2025

Tata IPO: India's largest tech-to-energy empire, Tata Group is coming up with yet another IPO in 2025. This time the buzz is not related to the much-awaited Tata Sons IPO, but instead to the group's financial services provider, Tata Capital. As per reports, the group has initiated the work on Tata Capital IPO which could be around Rs 15,000 crore. If that is the case, Tata Capital will most likely be the largest IPO from Tata Group.

Also, if Tata Capital IPO does debut in 2025, it will become the second listing by Tata Group after the Tata Technologies IPO in 2023.

Tata Capital IPO:

People aware of the matter told MoneyControl, "Work has begun on the proposed initial public offer. This is to comply with RBI's norms for 'upper layer' NBFCs. No final call has been taken on the quantum, but the deal is expected to be a big-bang one in excess of Rs 15,000 crore."

The news agency also reported that law firm Cyril Amarchand Mangaldas and investment bank Kotak Mahindra Capital are likely appointed as advisors.

More investment banks are likely to be roped in soon, while the IPO is expected to be a mixture of primary and secondary issues of shares.

Tata Capital Limited ("TCL"), the flagship financial services company of the Tata Group, is a subsidiary of Tata Sons Private Limited and is carrying on business as a non-banking financial company.

Tata Capital and its subsidiaries are engaged in providing/supplying a wide array of services/products in the financial services sector and operate across various areas of business: Commercial Finance, Consumer Loans, Wealth Services and distribution and marketing of Tata Cards.

As on October 28, 2024, the latest financial snapshot showed that Tata Capital has a loan book size of Rs 1,76,536 crore, while its profit after tax is at Rs 1,825 crore. The company has as much as 5.2 million customers, with over 900 branches.

Earlier, in August month, RBI approved the scheme of Scheme of Arrangement for the Amalgamation of Tata Capital Financial Services Limited ("TCFSL") and Tata Cleantech Capital Limited ("TCCL"), with Tata Capital Limited ("TCL/Company").

This led to the conversion of TCL into NBFC-ICC from NBFC-Core Investment Company ("CIC") and the Certificate of Registration issued to TCFSL and TCCL were surrendered to RBI and cancelled. RBI has issued the Certificate of Registration as NBFC-ICC accordingly.

Before Tata Capital, the hype was that Tata Sons could launch its IPO in 2025. This is due to RBI's list of NBFCs in the Upper Layer under Scale Based Regulation for NBFCs dated September 2023, for the year 2023-24. Under the list, Tata Sons was added to the Core Investment Company (CIC) category, which eventually paved the way for its listing. However, Tata Sons is reportedly exploring other options to avoid listing.

Tata Capital IPO could be the largest public offer of Tata Group. The last IPO launched by Tata was in November 2023, Tata Technologies which was worth Rs 3,042.51 crore in size.

Tata Technologies was the latest IPO by Tata Group since 2004 when Tata Consultancy Services (TCS) IPO was launched. TCS which is now the flagship company of Tata Group, had an IPO size of Rs 4,713.47 crore.

Notably, Tata Capital is not the only IPO which is mulled by the market to be launched in 2025. Reports have also stated that the conglomerate could launch an initial public offering of its companies like Big Basket, Tata Passenger Electric Mobility, Tata Projects, Tata Play, and Tata Autocomp Systems.

Tata Sons is the principal investment holding company and promoter of Tata Companies. 66% of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation, and art and culture.