Tata Capital Gears Up for IPO, Tata Investment Shares Surge

Tata Group's financial services arm has received a board approval to go ahead with its initial public offering (IPO). Tata has experienced a lot of investor interest as it was trading on hopes and anticipation for the IPO with shares of Tata Investment Corporation Limited (TICL) soaring.

IPO Details

In the Tata Capital IPO, 23 crore new shares will be issued at a face value of ₹10 per share. The IPO will also include an Offer for Sale of shares by eligible shareholders. The issue price will be declared at a later stage. Besides the IPO, the firm also approved ₹1,504 crore rights issue for better financial position, the record date for the same is February 25.

Reasons for Going Public

Tata Capital's decision to list is a result of the RBI's recent listing guidelines for NBFCs designated as "upper layer" institutions. The IPO will satisfy the regulatory requirement and also open the way for more capital to enable business growth and investment. Tata Capital was classified as an upper-layer NBFC in September 2022, which entails a public listing within a three-year timeframe.

Stock Market Impact

Shares of Tata Investment Corporation were up 8.75% after the announcement of the IPO. The shares of Tata Investment are trading at ₹6,230. The company's market capitalization stands at ₹31,460.16 crore.

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