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Tag: Tata Capital

  • Tata Capital’s IPO Gets Board Nod, 23 Crore Shares to Be Issued

    Tata Capital, the financial services arm of the Tata Group, has received board approval to proceed with an initial public offering (IPO). The company plans to issue 23 crore new shares and allow existing shareholders to sell their stakes through an offer for sale. This move complies with the Reserve Bank of India’s mandate requiring “upper layer” non-banking financial companies (NBFCs) to list by September 2025. This IPO marks the first for the Tata Group since Tata Technologies went public in November 2023.

    Ownership and Business Details

    Tata Capital was founded in 2007 and offers different types of loans, including home and personal loans. As of March 2024, Tata Sons owns 92.8% of the company. Other Tata Group firms, select officials, external organizations, and the International Finance Corporation (IFC) hold the remaining shares.

    INR 1,504 Crore Rights Issue

    Along with the IPO, Tata Capital’s board has approved an INR 1,504 crore rights issue for existing shareholders. A rights issue allows current shareholders to buy more shares at a fixed price. This helps companies raise money without determining a market price through a public listing.

    To prevent further expansion of its shareholder base, Tata Capital has introduced a provision preventing shareholders from waiving their rights in the rights issue until the company’s shares are listed on stock exchanges.

    Market Impact

    After reports that Tata Capital secured board approval for its IPO, shares of Tata Investment Corporation surged over 10%, reaching an intraday high of INR 6,344 on the BSE. This sharp rise came after Tata Capital approved its plan to go public, showing strong investor optimism about the upcoming IPO.

    Why This Matters

    The RBI wants large NBFCs to go public to improve transparency and governance in the financial sector. Tata Capital’s decision to launch an IPO follows this guideline and strengthens its position in the market.

    While the company has not yet shared details about pricing or dates, the IPO is expected to draw strong interest. The Tata Group is a well-known group, and Tata Capital is a key player in financial services.

    In summary, Tata Capital’s IPO and INR 1,504 crore rights issue mark a big step for the company. It helps meet RBI rules and prepares Tata Capital for growth in the stock market.

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  • Tata Capital and Lendingkart Formed a Partnership to Co-lend Unsecured Business Loans

    Lendingkart, a retail lending platform based in Gurugram, has teamed up with Tata Capital Limited, the financial services arm of the Tata Group, to provide unsecured business loans to MSMEs all over the nation.

    The goal of the agreement is to make it easier for micro, small, and medium-sized enterprises (MSMEs) to get the financing they need by utilising Lendingkart’s digital platform.

    Loans for businesses, working capital, micro, small, and medium enterprises (MSME), women-owned businesses, and individuals are all available through Lendingkart, which was established in 2014 by Harshvardhan Lunia and Mukul Sachan.

    Function of Lendingkart’s Software as a Service Solution

    A significant component of this partnership will be the Software as a Service (SaaS) platform known as “2gthr,” which is offered by Lendingkart. It is possible to handle the complete customer process with the assistance of the platform, which includes beginning the process of loan applications, promptly approving them, disbursing funds, and managing collections.

    Using this platform, Lendingkart intends to improve access to credit for micro, small, and medium-sized enterprises (MSMEs), making it possible for even underserved firms to take advantage of the loans that are made available through this cooperation.

    Meeting the Urgent Funding Requirements of Msmes

    The cooperation intends to address the crucial financial needs of micro, small, and medium-sized enterprises (MSMEs), a sector that frequently fails to gain access to credit.

    Harshvardhan Lunia, the founder and chief executive officer of Lendingkart, emphasised the significance of the relationship by adding, “Our objective is to increase credit penetration and make financing more accessible and easier for micro, small, and medium-sized enterprises. Through the formation of this cooperation, we will be able to solve the important finance requirements of enterprises that are not being adequately served and achieve higher operational benefits.”

    Through this cooperation, it is anticipated that Lendingkart’s technology skills will be combined with Tata Capital’s wide network in order to increase the number of firms that can be reached.

    Tata’s Emphasis on the Empowerment of MSMEs

    Vivek Chopra, Chief Operating Officer of Retail Finance at Tata Capital Limited, stated that the relationship between Tata Capital and Lendingkart exemplifies the company’s commitment to the expansion of collaborative arrangements. Small and medium-sized enterprises (MSMEs) will be able to capitalise on emerging possibilities and promote thorough company expansion thanks to this strategic plan.

    The network of Tata Capital, which has over 750 branches across India, is anticipated to play a significant role in making these loans available to micro, small, and medium-sized enterprises (MSMEs) nation-wide.

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