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Key Points

Tata Capital's Managing Director Rajiv Sabharwal expressed strong confidence in India's growth trajectory during the company's IPO announcement. The financial services firm is launching a massive Rs 15,500 crore public offering that opens for subscription on October 6. Sabharwal highlighted that Tata Capital has been growing at an impressive 28% rate over the past two years while maintaining excellent credit quality. The company focuses heavily on retail and SME segments, which make up 88% of its diversified loan portfolio across more than 25 products.

Key Points: Tata Capital MD Rajiv Sabharwal Says India Holds Huge Growth Potential

  • Tata Capital IPO opens October 6 with price band of Rs 310-326 per share
  • Company raising Rs 15,500 crore through primary and secondary offerings
  • Tata Capital growing at 28% annually with focus on retail and SME segments
  • 88% of loan book comprises retail and SME lending with granular portfolio
  • IPO includes 6% dilution from Tata Sons and IFC Washington
  • Company maintains low credit costs while expanding across 25+ products
3 min read

India holds huge growth potential, says Tata Capital MD Rajiv Sabharwal

Tata Capital MD Rajiv Sabharwal announces Rs 15,500 crore IPO opening October 6, highlighting India's massive growth opportunities and company's 28% expansion rate.

"India has a huge potential for growth and at Tata Capital, we are there to help take advantage of this opportunity - Rajiv Sabharwal"

Jaipur, October 4

Highlighting confidence in India's economic trajectory, Rajiv Sabharwal, Managing Director & CEO of Tata Capital, said the company is committed to enabling growth.

Jaipur (Rajasthan) [India], October 4 (ANI): Highlighting confidence in India's economic trajectory, Rajiv Sabharwal, Managing Director & CEO of Tata Capital, said the company is committed to enabling growth.

"The company believes that India has a huge potential for growth and at Tata Capital, we are there to help take advantage of this opportunity," he stated.

Sharing more information about Tata Capital's Initial Public Offer (IPO), Sabharwal further added, "Tata Capital IPO opens on October 6 and closes on October 8. The company is raising about Rs 15,500 Crores through both primary and secondary offerings. The primary offering is to help support growth for the organisation over the next 2.5 years. The secondary offering is from Tata Sons and IFC Washington. As far as the company is concerned, the company is building a very robust model for growth."

"Over the last 2 years, the company has been growing at a pace of about 28 per cent and also has ensured that the credit cost remains the least. The company is present in over 25 products with a strong bias towards retail and SME. Retail and SME form about 88 per cent of the total book. The book is very granular in nature, 98 per cent plus of the loans are of Rs 1 Crore or less. The secured book is large retail, unsecured forms just about 12 per cent of the total book. The company believes that India has a huge potential for growth and at Tata Capital, we are there to help take advantage of this opportunity," he added.

Addressing the media, Rajiv Sabharwal said that the price band for the IPO has been fixed between Rs 310 and Rs 326 per equity share. The IPO will open for subscription on October 6 (Monday) and will close on October 8 (Wednesday).

The offering comprises a total of 45.58 crore equity shares, which includes a fresh issue of up to 21 crore shares and an offer for sale (OFS) of up to 26.58 crore equity shares by existing shareholders.

The IPO is expected to raise significant capital for Tata Capital's future growth and expansion plans. More details regarding the issue size, investor quotas, and listing date are expected to be released soon in the official prospectus.

Speaking further, he said, "Through this, we are raising Rs 15,500 crore, comprising both primary and secondary components. A certain percentage is our primary raise, and there is a 6 per cent dilution from Tata Sons and IFC Washington. The pricing of this offering is about 5 per cent lower than the previous rights issue's upper band, and we have done this to bring more retail investors into the Tata Capital fold."

- ANI

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Reader Comments

R
Rohit P
28% growth rate is impressive! The Tata brand name gives me confidence, but I hope they maintain their credit discipline as they scale up. The pricing seems reasonable compared to previous issues.
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Sarah B
As someone who's been following Indian financial markets, it's encouraging to see such large-scale IPOs. The 88% retail and SME focus is smart - that's where the growth potential really is in India's economy.
A
Arjun K
₹15,500 crores is a massive amount! Hope the funds are used wisely for expansion. The secured book being large is reassuring for investors like me. Will definitely apply through my demat account.
M
Michael C
While I appreciate the optimism, I hope Tata Capital maintains its credit quality standards. The Indian NBFC sector has seen challenges before. The 98% granular loans under ₹1 crore is a good risk management strategy though.
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Kavya N
Perfect timing for this IPO! With festival season coming and economic recovery strong, Tata Capital can really capitalize on the growth. The 5% lower pricing shows they want retail participation - smart move! 🚀

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