Tata Investment Corp. share price surged over 8% during early trade on Tuesday after the Tata Capital Ltd. board approved plans to float an initial public offering of shares. The company has an equity interest in the highly-anticipated IPO.
Tata Capital is the holding company for the financial services businesses of the Tata Group and is registered with the Reserve Bank of India as a systemically important, non-deposit-taking, core investment company. Therefore, it is mandated to list by September 2025.
The company is in the final stage of merging Tata Motors Finance with itself. Post-merger, Tata Motors Ltd. will hold a 4.7% stake in the merged entity, while Tata Investment will hold around 2.7%.
The Tata Capital IPO is likely to be worth over $1 billion at current valuations and is likely to see Tata Motors, and possibly Tata Sons along with other Tata Group shareholder companies, participating in the offer for sale.
Tata Investment's share price surged 8.3% to Rs 6,230 soon after market opened. It was trading nearly 7% higher by 9:45 a.m.
The total traded volume stood at 12 times the 30-day average, according to Bloomberg. The relative strength index was 57.
The stock has fallen 8.4% in the last 12 months.
Tata Motors' share price also reacted positively to the news, surging as much as 0.64% to Rs 272.5 apiece. It was trading 0.18% higher by 9:45 a.m. The relative strength index was at 37.
The stock has fallen 28% in the last 12 months and 9.6% so far this year.
In 2023, Tata Technologies Ltd., an arm of Tata Motors, made a stellar debut on the stock exchanges. The stock was listed with a massive premium of 140% over the IPO price.
Meanwhile, the benchmark Nifty 50 was up 0.2%.
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