Tata Capital’s IPO Plan Boosts Investor Sentiment
Tata Investment Corporation Ltd. (TICL) shares surged over 10% on February 25, 2025, following the announcement that Tata Capital’s board has approved an Initial Public Offering (IPO). This marks the first public listing by a Tata Group company since Tata Technologies’ highly successful IPO in November 2023.
The IPO will comprise a fresh issue of 23 crore equity shares and an offer-for-sale (OFS) by existing shareholders. The move aligns with the Reserve Bank of India’s (RBI) mandate requiring large Non-Banking Financial Companies (NBFCs) to go public within three years of being classified under the “upper layer” category. Tata Capital must complete its listing before September 2025.
Tata Investment Corporation Shares Jump Over 10% Amid IPO Buzz
Following the IPO announcement, Tata Investment Corporation Ltd. (TICL) stock witnessed a sharp rally, with the stock price soaring to an intraday high of ₹6,343.80 on the BSE, marking a 10.33% increase. On the NSE, the stock touched ₹6,230, gaining 8.24% intraday before settling slightly lower.
Tata Investment Corporation Stock Performance:
- NSE Intraday High: ₹6,230 (+8.24%)
- BSE Intraday High: ₹6,343.80 (+10.33%)
- Opening Price: ₹5,800.15
- Previous Close: ₹5,750.10
Technical Analysis and Market Outlook
TICL’s stock has been trading above short-term moving averages (5-day, 10-day, 20-day, 30-day, and 50-day SMAs) but remains below long-term averages (100-day, 150-day, and 200-day SMAs).
- Support Level: ₹5,750
- Resistance Level: ₹6,500
- Potential Upside: If the stock crosses ₹6,500, it may reach ₹6,750 in the short term.
- 14-day RSI: 57.43 (neutral momentum)
Analysts suggest that investors could consider booking partial profits since Tata Investment Corporation shares often see buying interest ahead of Tata Group IPOs.
Tata Capital’s IPO: A Milestone for Tata Group’s Financial Arm
Tata Capital, a leading NBFC, was established in 2007 and operates under Tata Sons, which holds a 92.8% stake in the company. Tata Investment Corporation also owns over 2% in Tata Capital.
The upcoming IPO is a regulatory requirement set by the Reserve Bank of India (RBI) for “upper layer” NBFCs, mandating their listing within three years of classification. Tata Capital Financial Services, which merged with Tata Capital in January 2024, falls under this mandate, requiring the company to list by September 2025.
Tata Capital IPO Details
- Fresh Issue: 23 crore equity shares
- Offer for Sale (OFS): Existing shareholders will divest some stakes
- Parent Company: Tata Sons (92.8% stake in Tata Capital)
- Sector: Non-Banking Financial Services (NBFC)
This IPO will be Tata Group’s second listing in two years, following Tata Technologies’ blockbuster debut in 2023. The last major Tata Group IPO before that was Tata Consultancy Services (TCS) in 2004.
Tata Communications Raises ₹465 Crore via Commercial Papers
In a separate development, Tata Communications issued ₹465 crore worth of commercial papers on February 21, 2025, which were listed on the National Stock Exchange (NSE) on February 24. These commercial papers will mature on May 23, 2025, with a discount rate of 7.47% per annum.
Tata Communications Commercial Paper Details:
- Total Amount Raised: ₹465 crore
- Face Value per Security: ₹5 lakh
- Discount Rate: 7.47% per annum
- Maturity Date: May 23, 2025
What This Means for Investors and the Market
Tata Capital’s upcoming IPO is expected to attract strong investor interest, given the Tata Group’s legacy and the company’s strong financial position. Market experts believe that Tata Investment Corporation’s stock may continue to see volatility ahead of the IPO.
Investors should monitor market trends, RBI’s regulations, and upcoming financial disclosures from Tata Capital to make informed investment decisions.
