Tata Capital IPO: Listing Date, Valuation And Ownership — All You Need To Know
Unsecured creditors of Tata Capital will meet on Jan. 17, 2025 to approve the merger between the two non-banking finance companies.
The financial services arm of Tata Group, Tata Capital Ltd. is preparing to list by September end in 2025. The Tata Sons subsidiary will start its filing process once the ongoing merger with Tata Motor Finance is completed early next year. The merger process is underway in the National Company Law Tribunal, Mumbai.
The unsecured creditors of Tata Capital will meet on Jan. 17, 2025 to approve the merger between the two non-banking finance companies. Thereafter, the Tribunal will move to approve the merger. The approval for the merger is expected by the end of the fiscal year and the merged entity is likely to file for the initial public offer in the first quarter of fiscal 2025-26 to meet the RBI deadline for listing.
Tata Capital is the holding company for the financial services businesses and is registered with the Reserve Bank of India as a systemically important, non-deposit-taking, Core Investment Company. In September 2022, the banking regulator classified Tata Capital as an upper-layer systemically important NBFC. This classification requires the company to comply with stricter regulatory norms, including mandatory listing within three years .i.e. September 2025.
On a consolidated basis, Tata Capital reported a profit after tax of Rs 3,327 crore on a total asset base of Rs 1,76,694 crore in FY2024 compared with a profit after tax of Rs 2,946 crore on a total asset base of Rs 1,35,626 crore in FY2023. For the first half of FY25, profit after tax for Tata Capital stood at Rs 1892.52 crore on a total asset base of Rs 1,92,232 crore.
The proforma assets under management of the merged entity stood at Rs 2.30 lakh crore as on March 31, 2024, making it the 12th largest NBFC in the country. The proforma total assets at the merged entity is at Rs 2.27 lakh crore.
Valuation
In October this year, the Reserve Bank of India approved the merger of the two upper layer NBFCs paving way for the eventual single NBFC listing from the Tata Group. Tata Sons will own 88.49% in the merged NBFC along with Tata Group Cos including Tata Motors owning 7.72% in the company.
Tata Capital will have an equity capital of Rs 3880.7 crore comprising of 388.07 crore shares of Rs 10 face value post-merger with Tata Finance. At the time of merger of Tata Capital and Tata Motors, Tata Capital was valued at Rs 248.6 apiece. That puts the value of Tata Capital at Rs 96,475 crore on a post-merger basis. The proforma book value of the merged NBFC stood at Rs 31603 crore at the end of September 2024, thereby valuing the company at three times book value.
