Category: financial

Tata Motors shares jump as JLR bags $2B government loan

**Tata Motors Shares Surge as Jaguar Land Rover Secures $2 Billion Government-Backed Loan**

*By Mudit Dube | September 29, 2025, 10:55 AM*

Tata Motors witnessed a notable rise in its share price today following the announcement that its subsidiary, Jaguar Land Rover (JLR), has secured a $2 billion (1.5 billion GBP) loan. This privately financed loan is guaranteed by the UK’s export credit agency, UK Export Finance.

**Purpose of the Loan**

The financial assistance aims to alleviate the pressure on JLR’s suppliers and support a phased restart of the company’s operations. This move comes in the wake of a cyberattack in August that severely disrupted JLR’s production and IT networks, leading to a complete operational shutdown.

**Operational Impact of the Cyberattack**

Due to the cyberattack, JLR has been forced to halt production longer than initially expected, with shutdowns extending into the coming month. Reports from the Financial Times indicate that JLR could face losses totaling approximately $2 billion, as the company was not insured against such cyber incidents. This significant financial hit threatens to erase JLR’s entire profit for the fiscal year 2025.

Despite these challenges, news of the phased resumption of operations has positively impacted Tata Motors’ stock value, with shares rising by 1.45% to 673.95 per share on Friday.

**Financial Strategy and Government Support**

The UK government has confirmed that JLR will repay the £1.5 billion loan over a five-year period. The funds were arranged through a commercial bank and are secured by UK Export Finance. This strategic financial support forms part of broader efforts to assist JLR’s suppliers, many of whom have faced operational disruptions and delayed payments due to the cyberattack.

The government-backed loan and the gradual reopening of JLR’s operations are critical steps toward stabilizing the firm and mitigating the fallout from one of the most challenging incidents in its recent history.
https://www.newsbytesapp.com/news/business/tata-motors-shares-jump-as-jlr-secures-2b-government-loan/story

Non-Banking Financial Company Tata Capital Set To Launch IPO On October 6, Issue Size Pegged At ₹17,200 Crore

**Tata Capital to Launch USD 2 Billion IPO on October 6, Eyeing USD 18 Billion Valuation**

New Delhi: Tata Capital, the non-banking financial company and financial services arm of the Tata Group, is set to launch its initial public offering (IPO) on October 6, 2025. According to sources familiar with the matter, the issue size is pegged at an estimated USD 2 billion (approximately Rs 17,200 crore).

The IPO bidding will open on Monday, October 6, 2025, and close on Wednesday, October 8, 2025. The anchor investor bidding date is scheduled for Friday, October 3, 2025, as disclosed to the stock exchanges.

Tata Capital is targeting a valuation of around USD 18 billion. The proposed IPO comprises 47.58 crore shares, including a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares.

As part of the OFS, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares. Currently, Tata Sons holds an 88.6% stake in Tata Capital, and IFC owns a 1.8% stake.

Proceeds from the IPO will be utilized to strengthen Tata Capital’s Tier-1 capital base, supporting future capital requirements including onward lending.

Tata Capital filed draft papers for the IPO through the confidential pre-filing route in April 2025, receiving regulatory approval from the Securities and Exchange Board of India (SEBI) in July 2025. If successful, this IPO will become the largest public issue in India’s financial sector and mark the Tata Group’s second public listing in recent years, following Tata Technologies’ debut in November 2023.

### RBI Listing Mandate and Sector Context

This IPO aligns with the Reserve Bank of India’s listing mandate requiring upper-layer non-banking financial companies (NBFCs) to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.

In a similar sector move, HDB Financial Services, the non-banking arm of HDFC Bank, went public in June 2025 with a Rs 12,500 crore issue. Bajaj Housing Finance, another upper-layer NBFC, made a blockbuster market debut in September 2024, closing its first day of trade with a 135% premium over the issue price.

### Financial Performance and Business Portfolio

For the financial year 2024-25, Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore, up from Rs 3,327 crore in FY24. Its revenue also witnessed a significant jump to Rs 28,313 crore in FY25, compared to Rs 18,175 crore in the previous year.

Since beginning lending operations in 2007, Tata Capital has served more than 70 lakh customers as of March 31, 2025. With a portfolio offering more than 25 lending products, the company caters to a diverse clientele including salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates.

Beyond lending, Tata Capital also distributes third-party products such as insurance and credit cards, offers wealth management services, and acts as a sponsor and investment manager for private equity funds.

### IPO Management

The IPO is being managed by a consortium of leading book-running lead managers, including Axis Capital, Kotak Mahindra Capital Company, BNP Paribas, HDFC Bank, HSBC Securities and Capital Markets (India) Private Limited, Citigroup Global Markets India Private Limited, ICICI Securities, IIFL Capital Services, SBI Capital Markets, and J P Morgan India.

—

*Disclaimer: This story is from a syndicated feed. The content remains unchanged except for the headline.*
https://www.freepressjournal.in/business/non-banking-financial-company-tata-capital-set-to-launch-ipo-on-october-6-issue-size-pegged-at-17200-crore

Exit mobile version