Tata Investment Corporation saw a sharp rise in its share price on Tuesday, surging over 10% to hit an intraday high of Rs 6,344 per share. The rally in the stock price of the company came after Tata Capital, in which Tata Investment holds a stake, approved plans for its much-awaited IPO.
Tata Investment stock performance
As of now, Tata Investment’s share price is trading at Rs 6,206.75 per share, an 8% gain. The company’s market capitalisation stands at Rs 31,390 crore. Over the past five days, its stock has climbed nearly 9%, while the monthly gain is close to 5%. However, on a broader scale, the stock has seen a 13% decline over the past year.
Tata Capital’s IPO: What you need to know
Tata Capital, a NBFC under Tata Sons, has received approval from the board for the public issue The offering will include a fresh issue of 23 crore equity shares, along with an offer for sale from select existing shareholders.
As of the latest update, Tata Sons currently holds a dominant 93%stake in Tata Capital. Meanwhile, on the other hand Tata Investments owns over 2% stake in the company.
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According to its Draft Red Herring Prospectus (DRHP) filed with SEBI, Tata Capital plans to use the funds raised for expanding its lending and investment operations, repaying existing loans, supporting business operations, including capital expenditure and working capital needs.
Tata Group’s recent IPOs
Tata Capital’s IPO will mark the second public listing by a Tata Group company in nearly two decades. The last major IPO was Tata Technologies, which made its stock market debut on November 30, 2023.
Tata Technologies, a subsidiary of Tata Motors, had a blockbuster listing with a massive 140% premium over its issue price of Rs 500. The stock opened at Rs 1,199.95 on the BSE and Rs 1,200 on the NSE, making it one of the best performing IPOs in recent years.
With Tata Capital’s IPO now in the pipeline, market participants are eagerly watching to see if another strong listing is on the horizon for the Tata Group.
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