Tata Investment share price rises amid Tata Capital IPO buzz

Shares of Tata Investment Corporation Limited (TICL) climbed by 5% on March 4, 2025, following reports that Tata Capital Limited is aiming for an $11 billion valuation in its upcoming IPO. The stock reached an intraday high of ₹6,235 per share on the National Stock Exchange (NSE) and was trading at ₹6,178.5 per share at 9:30 AM, reflecting a 4.41% increase.

Tata Investment is one of the largest shareholders of Tata Sons Limited, which is the holding company for Tata Capital. The reported valuation could make Tata Capital's IPO one of India's biggest public offerings this year, potentially raising up to $2 billion.

Tata Capital's IPO plans and expected valuation

Tata Capital is currently in discussions about its IPO structure, with final details still being deliberated. The offering is expected to include a fresh issue of 23 crores of equity shares with a face value of ₹10 per share, alongside an offer-for-sale from select existing shareholders.

The IPO is a significant step for Tata Capital. The company must list its shares by September 2025 under the Reserve Bank of India's (RBI) mandate for "upper layer" Non-Banking Financial Companies (NBFCs). This move is expected to generate strong interest in share market investment, given Tata Capital's diverse financial services portfolio.

How Tata Capital's IPO impacts share market investment

With Tata Capital gearing up for its IPO, investors in the share market investment space are closely watching its potential impact. Here are a few key points to consider:

• Market valuation: Tata Capital's estimated $11 billion valuation is attracting significant investor attention. If the IPO meets expectations, it could set a strong benchmark for future financial sector listings.
• Investor demand: With a fresh issue of 23 crores of shares, retail and institutional investors may see this as an opportunity for long-term share market investment.
• NBFC sector performance: The performance of non-banking financial companies in India will play a crucial role in determining the success of Tata Capital's IPO. The company's diversified financial services, including wealth management, consumer loans, and commercial finance, make it a significant player in the sector.

What investors should consider before investing

For those looking to invest in Tata Capital's IPO, analysing the company's financial health, market position, and growth strategy is crucial. The broader share market investment scenario will also influence demand for Tata Capital's stock post-listing. Investors should review market trends and Tata Group's financial track record before making a decision. As of 11:30 AM on March 4, 2025, Tata Investment Corporation Limited's share price on the National Stock Exchange (NSE) was ₹6,065.12 per share. 

With the IPO expected to launch later this year, the coming months will provide more clarity on pricing, allotment details, and investment opportunities.