Source: The New Indian Express
The Tata Group’s financial services subsidiary, Tata Capital, announced robust earnings growth during the fourth quarter of the 2024–2025 fiscal year. This is happening while the business gets ready for its IPO.
The company’s earnings after tax increased by 31% to ₹1,000 crore between January and March of 2025. Compared to ₹765 crore in the same quarter last year, this is an increase. Additionally, operating revenue rose by almost 50% to ₹7,478 crore from ₹4,998 crore the previous year.
Tata Capital reported a ₹3,655 crore profit for the entire fiscal year, from ₹3,327 crore in 2023–2024. Over the course of the year, the company’s overall revenue increased from ₹18,175 crore to ₹28,313 crore.
For its first public offering (IPO), Tata Capital has submitted draft documents to the Securities and Exchange Board of India (SEBI). The confidential pre-filing method was used to complete the filing. Some shareholders will make an offer for sale (OFS) and issue new shares as part of the IPO.
The company is worth more than $11 billion, according to people briefed on the matter, and could raise close to $2 billion in the I.P.O. It would therefore become India’s largest initial public offering (IPO) in its financial sector. Both foreign and domestic investors are expected to be keen participants in the sale.
Tata Capital is 92.83% owned by Tata Sons, which is the holding company of the Tata Group. IPO approved by the board of directors for the IPO has already been granted to the company.
Respecting the RBI’s Regulations
The Reserve Bank of India’s (RBI) regulations are also followed by Tata Capital in its decision to go public. The RBI designated Tata Capital as a “upper-layer” non-banking financial corporation (NBFC) in September 2022. According to RBI regulations, these businesses have to list on the stock exchange within three years of being classified.
The company is also focusing on expanding its nationwide branch network and services. It plans to invest in technology and strengthen its digital capabilities to improve customer service and reach. These efforts are expected to support its growth in the very competitive financial services sector. Additionally, Tata Capital is focusing more on sectors including education loans and wealth management in an attempt to diversify its assets.
If the Tata Capital IPO is successful, it will be the second in a row for the Tata Group, after Tata Technologies’ offering in November 2022.
