Latest news with #TataSons
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Business Standard
a day ago
- Business
- Business Standard
Tata Capital rights issue pricing raises valuation to ₹1.38 trillion
Tata Sons, the holding company of the Tata group, participated in its financial services arm Tata Capital's rights issue last week at ₹343 per share — a 22 per cent premium to the earlier rights issue price of ₹281 per share in March. This latest investment has raised initial public offering (IPO)-bound Tata Capital's valuation by 31 per cent to ₹1.38 trillion, up from ₹1.05 trillion in March, according to company filings with stock exchanges. Last week, Tata Capital allotted additional equity shares of ₹10 each, aggregating ₹1,752 crore, on rights issue basis, the company said. With the rights issue, the paid-up equity share capital of the company rose from ₹3,983.79 crore to ₹4,034.87 crore, the company said. After this, the valuation of Tata Sons, which holds 93 per cent stake, went up from ₹98,175 crore to ₹1.28 trillion. Tata Capital is planning to come out with an IPO by September to raise up to $2 billion (₹17,259 crore). The IPO pricing for the company will be decided prior to the issue, depending upon the investors' response and market conditions, say bankers. Proceeds from Tata Capital's listing are expected to bolster Tata Sons' war chest as it ramps up investments in emerging sectors such as semiconductor manufacturing, and electronics. In 2023-24 (FY24), Tata Sons' standalone operating income rose 25 per cent to ₹43,767 crore, with nearly 95 per cent coming from TCS (Tata Consultancy Services) dividend, and buyback flows. For FY25, dividend receipts from TCS are expected to fall to ₹32,722 crore from ₹34,053 crore. Meanwhile, Tata Sons — now debt-free and tagged as upper-layer non-banking financial company (NBFC) — has sought to exit the Reserve Bank of India's (RBI's) NBFC-UL framework and has filed for reclassification, people said. The application is pending with the RBI. As of March 2025, Tata Capital reported a consolidated tangible net worth of ₹32,892 crore, up from ₹24,069 crore the previous year, supported by a ₹1,500 crore capital infusion from Tata Sons during FY25. Consolidated gearing improved slightly to 6.04x from 6.16x, Care Ratings said in May this year. As of September 2024, Tata Capital maintained a healthy capital structure, with a tangible net worth of ₹25,480 crore, and gearing of 6.35x. The company's standalone capital adequacy ratio (CAR) stood at 16.91 per cent, well above the regulatory threshold, the rating firm said. It added that Tata Capital's capital structure continues to benefit from the strong backing of the Tata group, which provides both financial flexibility, and a demonstrated track record of capital support. The rating firm said it expects Tata Capital's gearing to remain within the 6.0x-6.5x range over the medium term.
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Business Standard
a day ago
- Business
- Business Standard
Tata Capital rights issue pricing pegs valuation at Rs 1.38 trillion
Tata Sons' 93% stake in Tata Capital is now valued at Rs 1.28 trillion, following the company's latest rights issue and a 31% increase in Tata Capital's valuation Dev Chatterjee Mumbai Listen to This Article Tata Sons, the holding company of the Tata group, participated in its financial services arm, Tata Capital's rights issue last week at ₹343 per share — a 22 per cent premium to the earlier rights issue price of ₹281 per share in March. This latest investment has raised IPO-bound Tata Capital's valuation by 31 per cent to ₹1.38 trillion, up from ₹1.05 trillion in March, according to company filings with the stock exchanges. Last week, Tata Capital allotted 51 crore equity shares of ₹10 each, aggregating ₹1,752 crore through the rights issue, the company said. With the rights issue, the
News18
a day ago
- Business
- News18
Tata Capital IPO: Company Files Updated Confidential DRHP; Tata Investment Shares Surge 6.2%
Last Updated: Tata Capital IPO: Tata Sons is expected to offload up to 23 crore shares in the offer for sale (OFS), while International Finance Corporation (IFC) may sell 3.58 crore shares. Tata Capital IPO: Tata Capital has filed an updated confidential draft red herring prospectus (DRHP) for its much-anticipated initial public offering (IPO), sparking a rally in Tata Investment Corporation's shares. The stock rose as much as 6.25% in intraday trade on Monday, hitting a high of Rs 6,950 on the NSE, before paring some gains to trade 4.76% higher at Rs 6,857 around 1:25 noon. Investor sentiment turned bullish amid optimism that the Tata Capital IPO could unlock value and strengthen the Tata Group's presence in the listed financial services segment. The rally comes after two consecutive sessions of decline. According to a report by NDTV Profit, Tata Sons is expected to offload up to 23 crore shares in the offer for sale (OFS), while International Finance Corporation (IFC) may sell 3.58 crore shares. The IPO will also include a fresh issue of up to 21 crore shares. The move is in line with the Reserve Bank of India's directive requiring all 'upper layer' non-banking financial companies (NBFCs) to go public by September 2025. Tata Group's financial services firm Tata Capital has reported strong financial performance ahead of the listing. In the March 2025 quarter, the company's consolidated profit after tax (PAT) surged 31% year-on-year to Rs 1,000 crore, while revenue from operations jumped nearly 50% to Rs 7,478 crore. For the full FY25, PAT rose to Rs 3,655 crore from Rs 3,327 crore in FY24, and total revenues climbed to Rs 28,313 crore from Rs 18,175 crore. In April 2025, Tata Capital filed draft papers with markets regulator Sebi to launch its initial public offering. The draft papers for the $2-billion IPO was filed through a confidential pre-filing route. At this size, the company is expected to be valued around $11 billion. Tata Capital, identified by the Reserve Bank of India (RBI) as an upper-layer non-banking finance company (NBFC), has already secured board's approval to proceed with the initial share sale. Notably, Tata Sons, the holding company of Tata Capital, owns a 92.83 per cent stake in the company. If successful, this IPO will be the largest initial share sales in the country's financial sector. It will also mark the Tata Group's second public market debut in recent years, following the listing of Tata Technologies in November 2023. This move is part of the company's efforts to comply with the Reserve Bank of India's (RBI's) listing requirements. As per the RBI mandate, upper-layer NBFCs are required to list on the stock exchange within three years of being designated as such. Tata Capital was categorised as an upper-layer NBFC in September 2022. Tata Capital's decision to opt for the confidential pre-filing route is part of a growing trend among Indian companies. This route allows companies to withhold public disclosure of details under the draft red herring prospectus (DRHP) until later stages. In March, edtech unicorn PhysicsWallah also opted for the confidential filing route. In 2024, food delivery giant Swiggy and supermart major Vishal Mega Mart floated their IPOs after making confidential filings. Earlier, online hotel aggregator OYO had taken the confidential filing route in 2023 but eventually did not proceed with its IPO. Tata Play, formerly known as Tata Sky, was the first company in India to utilise this option for an IPO in December 2022, and secured Sebi's observation letter in April 2023. Although it later withdrew from the public issue. tags : IPO view comments Location : New Delhi, India, India First Published: July 21, 2025, 13:31 IST News business » ipo Tata Capital IPO: Company Files Updated Confidential DRHP; Tata Investment Shares Surge 6.2% Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Business Standard
a day ago
- Business
- Business Standard
Tata Capital IPO may raise ₹13,370 cr if valued at March rights issue level
Tata Capital Limited, the financial services arm of Tata Sons, could raise approximately Rs 13,370 crore from its upcoming initial public offering (IPO) if priced at Rs 281 per share — the same level at which the company conducted a rights issue in March this year. According to the updated pre-filed draft red herring prospectus (DRHP), the IPO comprises a fresh issue of up to 210 million equity shares and an offer for sale (OFS) of up to 265.82 million equity shares by Tata Sons and the International Finance Corporation (IFC). The total offer size, therefore, stands at 475.82 million equity shares. At Rs 281 per share, the fresh issue could garner around Rs 5,901 crore, while the OFS portion may yield Rs 7,469 crore, aggregating to a total of Rs 13,370 crore. The final IPO pricing will be determined closer to the offer period, based on investor response through book-building and consultations with investment bankers. First listing of a core Tata financial services entity This will mark the first public listing of a core Tata Group financial services company. Tata Capital, which was recently merged with Tata Motors Finance, has established a diversified lending portfolio spanning retail, SME, infrastructure, and corporate segments. As per the draft prospectus, the company reported a consolidated net worth of Rs 16,250 crore and profit after tax of Rs 2,142 crore as of March 31, 2024. OFS details and listing objectives The proposed listing is expected to unlock value for Tata Sons, broaden Tata Capital's capital base, and provide retail investors an opportunity to participate in the group's financial services growth. Tata Sons, the holding company of the Tata Group, is offering up to 230 million shares in the OFS, while IFC is divesting up to 35.82 million shares.
Time of India
3 days ago
- Business
- Time of India
Tatas launch ₹500 cr trust for Air India AI171 crash victims
Tata Sons has established a ₹500-crore trust to support families impacted by the Air India AI171 crash in Ahmedabad, which claimed 260 lives. The trust will offer ₹1 crore compensation per deceased, aid the injured and first responders, and help rebuild damaged infrastructure. Show more Show less
