Snapping two sessions of losses, shares of Tata Investment Corporation surged over 8% in early trade on Tuesday amid a report that Tata Capital is planning to list its shares on domestic bourses. The Tata Group company has started the process for the initial public offering (IPO) and is in discussion with certain bankers, as per reports. The report also suggests that the IPO would be a combination of fresh equities and share sale by promoters through offer for sale.  

Tata Capital is a non-banking financial services (NBFC) company and a subsidiary of the group's holding company Tata Sons. As of date, Tata Investment Corporation (TICL) owns over 2% stake in Tata Capital, while its parent, Tata Sons holds 93% stake in the NBFC company.

Reacting to the news, Tata Investment share price climbed 8.3% to hit a high of ₹6,225 in opening trade, while the market capitalisation climbed to ₹31,150 crore. Early today, the Tata group stock opened higher at ₹5,800.15, up 0.8% against the previous closing price of ₹5,750.10 on the BSE. In the past two sessions, the stock dropped nearly 6%.

Tata Investment Corporation shares have witnessed sharp correction in the recent past, with the stock hitting 52-week low of ₹5,147.15 on February 17, 2025. The counter is down 36% from its 52-week high of ₹9,744.40 touched on March 7, 2024.

In the last one year, shares of Tata Investment have corrected over 13%, while it delivered flat returns in the past six months. The stock has fallen over 10% in the calendar year 2025, while it rebounded 4% in a month.

As per the shareholding pattern of Tata Capital, Tata Sons directly own 92.83% stake in the company and the remaining stake is owned by the other Tata group companies and trusts as on March 31, 2024. On the other hand, Tata Motors and Tata Chemicals own 3% each in Tata Sons, which is mostly owned by Dorabji Tata Trust (28%) and the Ratan Tata Trust (24%). Among others, Tata Power and Indian Hotels hold 2% and 1%, respectively, in the holding company, while Cyrus Mistry family-led Sterling Investment Corporation and Cyrus Investments own 9% each in Tata Sons.

Tata Capital’s IPO is being seen as a move to comply with Reserve Bank of India’s (RBI) norms for 'upper layer' NBFCs. Tata Capital was notified as an upper-layer NBFC in September 2022, which makes it mandatory to list itself on the exchanges within three years of notification. The deadline for the same is September 2025. 

Earlier this year, The NBFC company raised $400 million through its maiden issuance from international bond markets, maturing in 3.5 years for investors in Asia and Europe. The company says it will pay an interest of 5.38% on the dollar-denominated bonds.

In October last year, the central bank approved the merger of Tata Capital with Tata Motors Finance (TMFL), paving the way for the formation of India’s 12th largest NBFC. As of March 31, 2024, Tata Capital had sizeable AUM of ₹158,479 crore as compared to ₹119,950 crore as on March 31, 2023, and ₹94,349 crore as on March 31, 2022. It caters to the diverse needs of retail, housing, SME, and corporate customers with a pan-India network of 900+ branches. Its range of offerings include consumer finance, housing finance, commercial finance, cleantech finance, microfinance, debt syndication, private equity, and credit cards.

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