TATA Capital Reports 31% Surge in Profit to ₹1000 Crore; Prepares for a Potential $2 Billion IPO.
IPO Update: TATA Capital reported stellar profits for the January-March quarter of fiscal year 2024-25. The company's net profit surged by 31% to reach ₹1000 crore, significantly higher than the ₹765 crore reported during the same quarter of the previous year. This b performance is likely to bolster TATA Capital's position in the stock market and attract investors ahead of its upcoming IPO.
IPO Preparations and Rising Profits
This surge in profit comes as TATA Capital is actively preparing for its Initial Public Offering (IPO). The company's positive financial performance is expected to attract potential investors. Last month, TATA Capital filed its draft prospectus with the Securities and Exchange Board of India (SEBI).
Significant Revenue Growth
The company also witnessed robust growth in its operating income during this quarter. Revenue increased by approximately 50%, reaching ₹7,478 crore compared to ₹4,998 crore in the same quarter of the previous year. This growth reflects b demand for the company's services and demonstrates its consistent growth potential.
Full Fiscal Year Performance
For the entire fiscal year 2024-25, TATA Capital reported a net profit of ₹3,655 crore, exceeding the ₹3,327 crore achieved in fiscal year 2023-24. Revenue stood at ₹28,313 crore, a significant increase from ₹18,175 crore in 2023-24. This increasing revenue and profit demonstrate the effectiveness of the company's business strategies.
IPO Size and Potential Valuation
According to the filed draft prospectus, TATA Capital's IPO could reach up to $2 billion. This could value the company at approximately $11 billion (approximately ₹82,000 crore). The IPO will include a fresh issuance of equity shares along with an offer for sale (OFS) by some existing shareholders. This move aims to further strengthen TATA Capital's presence in the stock market.
