What Sparked the Rally?

The surge in Tata Investment Corporation shares is attributed to reports that Tata Capital, another vital arm of the Tata Group, is preparing for an IPO. The recent success of Tata Technologies Ltd's public debut has fueled speculation and investor excitement about Tata Capital’s listing.

According to sources, the groundwork for the Tata Capital IPO is already in motion, with Cyril Amarchand Mangaldas and Kotak Mahindra Capital engaged as advisors. The IPO, projected at a valuation of ₹15,000 crore, is expected to comprise both primary and secondary share offerings, generating significant buzz in the market.

Key Factors Boosting Investor Sentiment

Tata Group’s Strategic Moves

• Tata Capital, a subsidiary of Tata Sons Private Limited, holds a 92.83% stake in its shares, totaling 3.47 billion shares as of March 31.
• Tata Sons, the promoter, also owns 68.51% of Tata Investment Corporation, underscoring the group’s leadership.

Regulatory Push

• The Reserve Bank of India (RBI) classified both Tata Capital and Tata Sons as Non-Banking Financial Companies (NBFC) in the upper layer, mandating them to go public by September 2025.

Recent Milestones

• In August 2024, the RBI approved the transformation of Tata Capital into an NBFC–Investment Credit Company (ICC).
• In October 2024, Tata Capital merged with Tata Motors Finance, creating India’s 12th largest NBFC.

What’s Next

The upcoming Tata Capital IPO is set to enhance the group’s position in India’s financial sector. The company is expected to collaborate with more investment banks to finalize the offering. These developments solidify the Tata Group’s reputation as a trailblazer in India’s corporate landscape.

Market Performance

The rally underscores robust investor confidence in Tata Investment Corporation. The stock, with a 52-week high of ₹9,744.40 and a low of ₹4,170, continues to exhibit strong growth momentum.