Tata Investment and Tata Motors Share Price Gains Upto 3%: Tata Capital IPO Plans

Market Performance

On March 4, 2025, shares of Tata Motors and Tata Investment Corporation recorded gains of up to 3%. These movements were observed following reports regarding Tata Capital pursuing a valuation of approximately $11 billion for a potential public offering.

As per available data:

• Tata Investment Corporation shares traded at ₹6,097.65 on the NSE, reflecting an increase of around 3%.
• Tata Motors shares were recorded at ₹623.45, showing a marginal uptick.

Main News

Reports indicate that Tata Capital, the financial services arm of the Tata Group, is considering a valuation close to $11 billion for its upcoming Initial Public Offering (IPO). If this proceeds as reported, it could mark one of India's most extensive public offerings for 2025.

The expected public issue aims to raise $2 billion, though the specific details of the IPO are still under discussion and subject to finalization.

According to regulatory filings with the NSE and BSE, the proposal includes:

• A fresh issue of 23 crore shares.
• An Offer-for-Sale (OFS) component.

Under the Reserve Bank of India guidelines for "upper layer" Non-Banking Financial Companies (NBFCs), Tata Capital is required to list on the stock exchanges by September 2025.

Company Details

Tata Capital Shareholding Structure (as of March 31, 2024)

• Tata Sons holds 92.83% of Tata Capital.
• The remaining ownership is distributed among other Tata Group entities.

Tata Sons' Financial Support to Tata Capital:

• FY19: ₹2,500 crore
• FY20: ₹1,000 crore
• FY23: ₹594 crore
• FY24: ₹2,003 crore

Over the past five fiscal years, Tata Sons has infused a total of ₹6,097 crore into Tata Capital. Additionally, key members of Tata Sons are part of Tata Capital's Board, indicating active involvement in the company's strategic direction.

Related Equity Stakes:

• Tata Motors holds approximately 4% equity in Tata Capital.
• Tata Investment Corporation owns around 2% equity in Tata Capital.
• Tata Investment Corporation functions as the investment arm of the Tata Group, with stakes in several group companies.

Summary

Recent reports concerning Tata Capital's potential public offering have coincided with modest gains in the shares of Tata Motors and Tata Investment Corporation. The proposed IPO, estimated at around $11 billion, the structure is designed to adhere to all regulatory requirements and is scheduled to occur before September 2025.

The equity holdings of Tata Motors and Tata Investment Corporation in Tata Capital link their market performance to developments within Tata Capital. Furthermore, Tata Sons' consistent financial support and active board participation highlight its involvement in Tata Capital's growth and operations.