The Tata Group plans to float Tata Capital Ltd by September. The proposed IPO is projected to garner approximately Rs 17,000 crore.
Noel Tata, the late Ratan Tata’s half-brother, has expanded his role within Tata Sons Ltd, the main holding company of the $150 billion Tata Group, after shareholders approved his appointment as a director at the company’s Annual General Meeting on Thursday.
In October 2024, Noel Tata became Chairman of Tata Trusts. He was nominated to the Tata Sons board by the Trusts and appointed as an additional director last year following Ratan Tata’s death.
Along with Noel Tata, shareholders also approved the reappointment of Venu Srinivasan and Saurabh Agrawal. They also appointed Anita Marangoly George as an independent director. George is the co-founder and CEO of Prosperete, a growth fund focused on emerging markets. She is also a former senior official at the World Bank and the International Finance Corporation (IFC).
Noel Tata is the sole board member that owns shares in Tata Sons, with 4,058 shares.
Tata Trusts, which controls 66% of Tata Sons, had previously reiterated its belief that the company should stay privately held. It is against Tata Sons’ listing, despite the fact that the Reserve Bank of India’s laws require upper-layer non-banking financial corporations (NBFCs) to be listed on public markets.
The AGM took place amid ongoing discussions with the Shapoorji Pallonji (SP) Group, which owns 18.4 per cent of Tata Sons, regarding a possible exit from the company. However, no agreement has been reached so far.
The Tata Group plans to float Tata Capital Ltd by September. The proposed IPO is projected to garner approximately Rs 17,000 crore.
With Ajay Piramal and Ralf Speth stepping down from the board, two new directors are expected to be recruited. Tata Sons has declined to comment on the AGM facts.
This is Tata Sons’ second consecutive year of virtually doubling its dividend. In the preceding fiscal year (FY23), the dividend was Rs 17,500 per share. The Shapoorji Pallonji Group, which holds an 18% share, will also benefit greatly from the enhanced payout.
Despite the drop in profit, Tata Sons repaid all of its outstanding borrowings during the year. The company completed the fiscal year with a net cash position of Rs 7,117.43 crore, up from Rs 2,679.19 crore the previous year.
