Tata Capital's Q1 results: Net profit surges 120% to ₹1,041cr
What's the story
Tata Capital, the financial services arm of the Tata Group, has reported a massive 120.5% jump in profits for Q1 FY2025. The company posted a net profit of ₹1,041 crore for the April-June quarter, compared to ₹472.21 crore in the same period last year. The surge comes as Tata Capital gears up for a mega initial public offering (IPO) worth $2 billion (₹17,200 crore).
Financial growth
Total income rises to ₹7,691cr
Along with the profit surge, Tata Capital also witnessed a significant increase in its total income for the quarter under review. The company's total income rose to ₹7,691.65 crore from ₹6,557.40 crore in Q1 FY2025. This financial growth comes as the company prepares for its upcoming IPO, which is expected to value Tata Capital at around $11 billion (₹90,000 crore).
IPO details
Proposed IPO to include fresh issue and OFS
The proposed IPO will consist of 47.58 crore shares, including a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore stocks. Under the OFS component, Tata Sons will sell 23 crore shares, while the International Finance Corporation (IFC) will offload 3.58 crore shares. Presently, Tata Sons owns an 88.6% stake in Tata Capital while IFC holds a 1.8% stake in the company.
Market impact
Largest public issue in India's financial sector
If successful, this IPO will be the largest public issue in India's financial sector. It will also mark the Tata Group's second public listing in recent years, after Tata Technologies' debut in November 2023. The public issue is being undertaken as per the Reserve Bank of India's (RBI) listing mandate for upper-layer non-banking finance companies (NBFCs), which mandates them to list within three years of classification.