Tata Capital IPO: Leading NBFC Fundraising Plans to Hit Soon

Tata Group is India’s one of the largest salt-to-software conglomerates with a market capitalization of more than $365 billion as of March 31, 2024. In this blog, we’ll find out the details of the conglomerate company’s upcoming IPO, namely Tata Capital IPO.

Tata Capital IPO Details

Tata Capital IPO, with a valuation of ₹15,000 crores is expected to come on floors in September 2025. Founded in 2007, Tata Capital is a subsidiary of Tata Sons, which is a principal investment holding company of Tata Group.

Other Tata Group companies that have their shareholding in either Tata Sons or Tata Capital can unlock the value from this IPO. Some of the Tata Group companies that will benefit from this IPO are Tata Chemicals, Tata Motors, Indian Hotels, and Tata Investment Corporation.

Tata Capital IPO: About the Company

Tata Capital is a non-banking financial services (NBFC) arm of Tata Group. Tata Capital (plus its subsidiaries) provides a wide range of products and services in the financial services sectors and operates in different business segments including consumer finance, consumer loans, wealth services, and distribution and marketing of Tata Cards.

The product and service portfolio of Tata Capital includes personal finance, home loans, business loans, private equity, loans against property, wealth product distribution, etc.

Tata Capital attains the position of being the third-largest diversified NBFC in India in FY24. It crossed the ₹1 lakh crore disbursal mark and also secured an investment grade international rating of BBB- (which is equal to India’s sovereign rating) from S&P and Fitch which will help them tap global markets for funding requirements.

Tata Capital IPO: Financial Performance

Here are the details of the financial results of Tata Capital Limited:

*(in ₹ crores)

1. Increase in Loan Book Size: Tata Capital’s consolidated book size rose to ₹1,57,760.55 crores in FY24. This marks an increase of 35% from the book size of ₹1,16,788.72 crores in FY23.
2. Rise in Interest Expense: The consolidated interest expense increased to ₹9,568.23 crores in FY24. With an interest expense of ₹6,600.64 crores in FY23, this marks an increase of 44.96% due to the higher cost of funds.
3. GNPA and NNPA Fall: The consolidated gross non-performing assets (GNPA) decreased to 1.47% in FY24 from 1.71% in FY23. The net non-performing assets (NNPA) fell to 0.38% in FY24 from 0.40% in FY23.
4. Drop in PCR: The provision coverage ratio fell to 74.12% in FY24 from 77.08% in FY23.
5. Rise in ROA and ROE: The consolidated ROA (Return on Assets) increased to 2.40% from 2.30% in FY23. Also, the ROE (Return on Equity) rose to 17.60% from 17.30% in FY23.

Conclusion

Tata Capital IPO will be the main highlight of the year that can drive the fuelling IPO market and further boost the investor’s interest. This finance industry player’s fundraising plans will support the operations and help in raising profitability and increasing shareholders’ value.

So, open Demat Account with SMC Global Securities and keep investing in stocks, IPOs, and mutual funds to grow your wealth.

Frequently Asked Questions – FAQs

1. Is Tata Capital IPO coming?

Yes, Tata Capital IPO is expected to come in September 2025 with a mega issue size of around ₹15,000 crores.

2. Is Tata Capital a good buy?

Tata Capital’s profitability and performance metrics have been good in the past quarters and the company holds a strong command in the financial service sector, making it a good IPO to consider.

3. What does Tata Capital Limited do?

Tata Capital Limited is a financial services company that caters to housing finance, commercial and SME, consumer finance, and advisory services segments.

References:
https://www.tatacapital.com/content/dam/tata-capital/pdf/investors-and-financial-reports/annual-reports/23-24/tata-capital-limited.pdf

Author: All Content is verified by SMC Global Securities.