According to sources cited by Mint, Tata Capital, a division of the Tata Group, intends to go public in 2025 with an initial public offering (IPO), aiming for a valuation equivalent to Jio Financial Services, the financial division of Mukesh Ambani’s Reliance Jio.
A brief about Tata Capital is possible to launch its IPO in 2025
This action is a component of a larger plan by Tata Group to restructure its business and go public with its non-bank lending arm.
Prior to the IPO, the strategy calls for the enlargement of the Tata Capital board and the unification of other group companies under Tata Capital.
The hiring of investment bankers is anticipated to begin the IPO process in March 2024, according to company sources who talked to the business daily.
According to the sources cited in the paper, the IPO process will start in March 2024 with the appointment of investment bankers.
Tata Capital and its parent business, Tata Sons Ltd., have lately been designated by the Reserve Bank of India (RBI) as “upper-tier” non-banking financial corporations (NBFCs), which requires more stringent regulatory compliance.
According to RBI regulations, “upper-tier” NBFCs must list three years after being given this designation. Due to this classification, Tata Sons, the parent company of the Tata Group, is thinking about doing its own IPO, which could end up being the largest IPO in Indian history.
Tata Capital Ltd.’s combination with Tata Cleantech Capital and Tata Capital Financial Services was previously authorized by the Competition Commission of India (CCI). The Tata Group is now undergoing a restructuring process, which includes this merger.
Tata Capital’s managing director, Rajiv Sabharwal, responded to these events by declaring that the company would adhere to RBI regulations surrounding the listing of “upper-tier” NBFCs.
