Tata Investment shares were in demand in the stock markets today, February 25, 2025. Tata Investment share price surged 10.3 per cent on the BSE in Tuesday’s intraday trade, hitting a high of Rs 6,343.8 per share.
The rally in Tata Investment shares came after reports said the Board of Tata Capital has given a go-ahead to the non-bank finance company’s (NBFC’s) initial public offering (IPO).
At 10:45 AM, Tata Investment shares were ruling 8 per cent higher at Rs 6,210 per share as against a 0.32-per cent rise in the benchmark BSE Sensex index. In the past one week, Tata Investment share price has surged 21 per cent on the BSE as against a 2-per cent decline in the Sensex index. According to reports, Tata Capital Board has approved the launch of the Tata Capital IPO as it is required to list its shares on the stock exchange by September 2025.Reuters reported that the Tata Capital IPO will consist of a fresh issue and an offer for sale (OFS) by promoters.
While the IPO may see fresh issue of around 230 million shares, the quantity of shares, to be sold by promoters via OFS, is not known. Reports suggest Tata Capital IPO could look to raise Rs 15,000 crore via the primary markets.
Notably, Tata Sons has a 93-per cent stake in Tata Capital. Further, Tata Sons has a 68.51-per cent stake in Tata Investment Corporation as of December 31, 2024.Other shareholders of Tata Capital include -- Tata group companies (2.46 per cent stake), International Finance Corporation (1.91 per cent stake), and the Employee Welfare Trust (1.16 per cent stake). The remaining 1.64 per cent stake is held by ‘others’.Meanwhile, on February 1, 2025, Tata Capital Board agreed to change its memorandum of association and adopt a new set of articles of association (AoA), paving way for the initial public offer on Tata Sons’ financial services arm.
Tata Investment Corporation is yet to issue any clarification on the report.