Upcoming Tata IPO: 5 Listed Tata Group Companies Hold Shares In Tata Capital: Who & Should You Buy Them?

Tata Capital IPO: The NBFC arm of Tata Group, Tata Capital has received a green signal to launch its initial public offering (IPO). Tata Capital IPO is much-awaited in the sector and among investors. Following this, a host of Tata Group stocks jumped sharply on Tuesday, February 25, 2025, and some of them hold significant shares in Tata Capital. Find out who are they and should buy these Tata stocks.

Tata Group Companies Holding Tata Capital Stake:

Together, five listed companies of Tata Group hold approximately 2.4% stake in Tata Capital, with Tata Investment Corporation being the largest listed shareholder among them. Notably, it is Tata Sons that holds the largest share of Tata Capital to the tune of 92.83%.

1. Tata Investment Corporation Share Price:

This NBFC holds about 2.15% stake in Tata Capital. On Tuesday, Tata Investment's share price skyrocketed by over 10% after the Tata Capital IPO approval. The stock hit an intraday high of Rs 6343.80 apiece.

According to Markets Mojo data, when examining moving averages, Tata Investment Corporation's current price is above the 5-day and 20-day moving averages, yet remains below the 50-day, 100-day, and 200-day moving averages. This data indicates a mixed trend in the stock's performance over different time frames, reflecting its current market position within the large-cap segment.

2. Tata Consumer Products Share Price:

This FMCG player of Tata Group holds about 0.02% stake in Tata Capital. Tata Consumer shares gained by nearly 1% to hit an intraday high of Rs 1009.35 apiece on BSE. Its market cap neared Rs 1 lakh crore mark.

As per Trendlyne data, the consensus recommendation from 27 analysts for Tata Consumer Products Ltd. is BUY. EPS is expected to grow by 19.1% in FY25. The average 1-year target price on Tata Consumer is of Rs 1,189, hinting at potential 18% upside ahead. Brokerage Sharekhan recommended BUY with target of Rs 1,234 apiece on Tata Consumer earlier this month, which would give a room for potential 22% upside.

3. Tata Chemicals Share Price:

Tata Chemicals' share price traded volatile on BSE. After opening higher at Rs 837.05 apiece, the stock zoomed by nearly 1% to hit an intraday high of Rs 844.15 apiece. However, in the second half of the session, the stock pulled back to hit an intraday low of Rs 827.85 apiece and currently is trading in the red. This salt-maker of Tata Group holds about 0.09% stake in Tata Capital.

As per Trendlyne data, the consensus recommendation from 7 analysts for Tata Chemicals Ltd. is SELL. However, EPS is expected to grow by 184.2% in FY25. The average 1-year target price is at Rs 936.71 apiece, hinting at nearly 13% potential upside ahead.

4. Tata Motors Share Price:

The automobile heavyweight stock continued to extend its losses and touched a new 52-week high of Rs 662.10 apiece. However, Tata Motors shares have been under pressure due to its weak sales and quarterly earnings report. Nonetheless, Tata Motors holds about 0.12% stake in Tata Capital, which makes the auto giant the second largest listed Tata Group company shareholder in the NBFC.

As per Trendlyne data, the consensus recommendation from 30 analysts for Tata Motors Ltd. is BUY. However, EPS is expected to reduce by 28.3% in FY25. The average 1-year target price is at Rs 949.73, which signalled about more than 43% potential upside ahead.

5. Tata Power Share Price:

Tata Power's share price traded volatile as well, but at a slower pace. The stock is currently in red but on a muted note. Its stock ranges from Rs 356.25 apiece intraday high and Rs 350.20 intraday low. The energy flagship company of Tata Group holds about 0.06% stake in Tata Capital.

As per Trendlyne data, the consensus recommendation from 21 analysts for Tata Power Company Ltd. is HOLD. EPS is expected to grow by 15.6% in FY25. The average target price in Tata Power is Rs 441.48 apiece, hinting at a potential 25% upside. Brokerage Sharekhan and ICICI Securities have recommended BUY for a target price of Rs 485 and Rs 470. The highest target price is set by Motilal Oswal at Rs 490 on Tata Power with a buy rating.

Tata Capital IPO:

As per a Reuters report, Tata Capital IPO will comprise of fresh issue of 230 million equity shares. Tata Capital did not share any further details on its proposed public float. Also, on February 25, the board also approved to carry rights issue worth Rs 1,504 crore for existing shareholders.

Last year, in December, as per the MoneyControl report, Tata Capital IPO was expected to be a big-bang one in excess of Rs 15,000 crore. The news agency also reported that law firm Cyril Amarchand Mangaldas and investment bank Kotak Mahindra Capital are likely appointed as advisors.

If Tata Capital's IPO is announced to Rs 15,000 crore, then it will be the biggest ever IPO under Tata Group's ambit. It is also the first IPO since Tata Technologies that debuted in 2023. Tata Capital Limited ("TCL"), the flagship financial services company of the Tata Group, is a subsidiary of Tata Sons Private Limited and is carrying on business as a non-banking financial company.