Tata Investment Corporation Soars 8% as Tata Capital’s ₹17,200 Crore IPO Nears SEBI Approval

Shares of Tata Investment Corporation witnessed a notable surge of 8% on June 6, climbing to ₹7,150 per share. The rally followed reports suggesting that Tata Capital’s highly anticipated initial public offering (IPO) is set to receive approval from the Securities and Exchange Board of India (SEBI).

On June 6, Tata Investment Corporation Limited opened at ₹6,680.00, up from its previous close of ₹6,633.50. The stock touched an intraday high of ₹7,178.00 and a low of ₹6,660.00, with a volume of 3,82,216 shares and a traded value of ₹26,281.17 lakh. The VWAP stood at ₹6,944.63. Its market cap is ₹34,789 crore. The stock has a 52-week range of ₹5,145.15 to ₹8,074.25 and an all-time high of ₹9,756.85. With a TTM EPS of ₹61.68 (down 18.93% YoY), the stock trades at a high P/E of 111.48 and a P/B ratio of 0.95.

SEBI Clearance Expected for ₹17,200 Crore Tata Capital IPO

Market sources indicate that SEBI has nearly concluded its review of the Tata Capital IPO proposal. An official observation letter is expected to be issued in the coming weeks. The IPO is projected to raise ₹17,200 crore and will include both a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders.

IPO to Fulfil RBI’s NBFC Listing Requirement

The upcoming public offering is crucial for Tata Capital to meet the Reserve Bank of India’s mandate. As per RBI regulations, non-banking financial companies (NBFCs) classified under the ‘upper layer’ must be listed on the stock exchange by September. If the IPO proceeds as scheduled, it will represent the Tata Group’s second major market listing in recent years, following the successful debut of Tata Technologies in November 2023.

Robust Financials Strengthen Investor Sentiment

Tata Capital has reported impressive financial results ahead of its IPO. In the fourth quarter of FY25, the company posted a 31% year-on-year increase in consolidated profit after tax (PAT), which rose to ₹1,000 crore from ₹765 crore. Revenue from operations also grew significantly by nearly 50%, reaching ₹7,478 crore in the same period.

Full-Year FY25 Financial Highlights

• Profit After Tax (PAT): ₹3,655 crore (up from ₹3,327 crore in FY24)
• Total Revenue: ₹28,313 crore (up from ₹18,175 crore in FY24)

The anticipated SEBI approval, strong financial performance, and regulatory compliance requirements have all contributed to increased investor confidence, driving the surge in Tata Investment Corporation’s share price.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations