A Comprehensive Overview of Tata Capital Unlisted Share Price & Journey
In the vast expanse of the Indian financial sector, certain names reverberate with a history of trust and reliability. Tata Sons Limited, one of the country’s premier business conglomerates, has consistently been at the forefront of driving excellence in numerous sectors. A notable subsidiary under its umbrella is Tata Capital.
Understanding Tata Capital’s Inception and Growth
Born out of the esteemed lineage of Tata Sons Limited, Tata Capital embodies the principles of trust and customer-centricity that the Tata Group is renowned for. As a one-stop financial solutions partner, Tata Capital is not just an entity; it’s a promise to its wide spectrum of retail, corporate, and institutional customers.
This promise transcends into various financial avenues, ensuring a comprehensive bouquet of services that cater to the diverse financial requirements of its clientele.
At the heart of Tata Capital’s offerings are its many specialized subsidiaries, each adeptly catering to a niche segment, ensuring that the needs of every customer, be it individual or corporate, are meticulously addressed.
Diving Deeper: A Closer Look at Tata Capital’s Services
Tata Capital Financial Services Limited: Operating under this subsidiary, Tata Capital offers a wide range of financial services. From corporate finance and commercial finance to leasing and rural finance, the company has covered a broad spectrum of services. This diversification ensures that no matter the financial need, Tata Capital is equipped to provide an effective solution.
Tata Capital Housing Finance Limited: Venturing into the real estate and housing sector, this subsidiary is where dreams of homeownership come true. It’s not just about providing home loans. Tata Capital recognizes the multifaceted needs of the housing sector, offering services like construction finance and even catering to the affordable housing segment, ensuring that everyone, irrespective of their income bracket, can own a piece of their dream.
Tata Cleantech Capital Limited: Recognizing the increasing global emphasis on sustainable and clean energy, Tata Capital, through this subsidiary, has established itself in the renewable sector. By providing both financing and advisory services, the company has positioned itself as a major player in promoting and enabling the shift towards renewable resources.
Tata Securities Limited: Diversifying further, Tata Capital has marked its footprint in the investment banking sector. This subsidiary offers services related to investment banking and also acts as a distributor for mutual funds and third-party financial products, specifically tailored for institutional customers.
Brief overview of TATA Capital’s product portfolio:
Consumer Loans: TATA Capital provides loans for various consumer needs, such as personal loans, home loans, auto loans, and two-wheeler loans. These loans are designed to help individuals fulfill their aspirations, whether it’s buying a home, a car, or funding other personal expenses.
Business Loans: The company offers business loans for small and medium-sized enterprises (SMEs) to support their growth and expansion plans. These loans could be used for working capital, business expansion, equipment purchase, and more.
Two-Wheeler and Auto Loans: TATA Capital provides financing options for purchasing two-wheelers and automobiles, making it easier for individuals to own their preferred mode of transport.
Home Loans: TATA Capital offers home loans to assist individuals in buying or constructing a house. These loans typically cover a significant portion of the property’s cost and can be repaid over an extended period.
Personal Loans: Personal loans from TATA Capital are unsecured loans that can be used for a variety of purposes, such as medical emergencies, weddings, travel, education, and other personal expenses.
Loan Against Property: Customers can avail loans by pledging their residential or commercial property as collateral. These loans are typically used for business expansion, debt consolidation, or other substantial financial requirements.
Business Working Capital Loans: TATA Capital provides working capital financing solutions to help businesses manage their day-to-day operational expenses and maintain a healthy cash flow.
Business Equipment Loans: This type of loan assists businesses in acquiring machinery, equipment, or tools necessary for their operations.
Loan Against Securities: Customers can leverage their investments in stocks, mutual funds, bonds, and other financial securities to secure loans for various needs.
Insurance Services: TATA Capital offers insurance products, including general insurance and life insurance, to provide financial protection against unexpected events.
Credit Cards: TATA Capital offers credit cards that come with different features and benefits, catering to various spending and lifestyle preferences.
Global Reach: Beyond Borders
While Tata Capital’s heart beats in Mumbai, where it’s headquartered, its influence is not limited to the Indian shores. Recognizing the global nature of finance and the interconnectedness of today’s world, the company has registered offices for its subsidiaries in international financial hubs like Singapore and London.
This global presence ensures that Tata Capital remains in sync with international financial trends, thereby offering its customers a world-class service.
Tata Capital Share Price: A Mirror to Its Success
The market’s faith in a company is often reflected in its share price. The Tata Capital share price, oscillating between INR 550 to 600 per share, offers insights into the company’s robust performance and the trust it enjoys in the market. While it’s not listed on the major stock exchanges, Tata Capital unlisted share price within this range is a testament to its stability and growth trajectory.
The Tata Capital Unlisted share price is ₹525 with an AUM of ₹1,16,756 Crores.
Note: Check the Latest Tata Capital Unlisted Share Price at UnlisteZone Android or iOS Mobile App.
Financial Performance of Tata Capital Unlisted Share in FY21-22
1. Tata Capital Limited, registered with RBI as a Core Investment Company, primarily holds investment in its subsidiaries, mainly engaged in lending and offering a wide range of services and products in the financial services sector.
2. Tata Capital Finance Services Limited, Tata Capital Housing Finance Limited and Tata Cleantech Chemical Limited are the three main subsidiaries engaged in lending business.
3. Tata Capital reported the highest profit during FY22. The firm has achieved this by expanding Net Interest Margin (NIM), focused management of operating cost and tightening Credit policies.
4. PAT has increased to Rs. 1,801 Crore from Rs.1,245 Crore.
5. The Consolidated Net Interest Income and Other Income for the year was Rs. 5,364 crore. It was Rs. 4,775 crore in FY21, an increase of 12%.
6. NPA has decreased from 0.9% in FY21 to 0.6% in FY22.
7. The Return on Equity increased from 12.4% in FY 2020-21 to 15.3% in FY 2021-22.
8. Total loan Book stood at Rs. 90,121 Crore as on march 31st 2022, up by 22%.
9. Additionally, the book value has risen from 28.79 to 33.82.
Financial Performance of Tata Capital Unlisted Share in FY22-23
1. Highest-ever PAT of Rs. 2,975 Cr, displayed sharp growth of 80% Y-o-Y in FY23 driven by healthy Net Interest Margin (NIM)and other Revenue growth while keeping the operational and credit costs under check.
2. The Net Interest Margin (NIM) of FY23 is 7,023 Crore. It was 5,253 Crore in the previous year, y-o-y growth of 34%.
3. NPA has further decreased to 0.4%.
4. As on 31st March 2023, total Loan Book stood at 1,20,940 Crore , grew by 28%
5. Book Value has also increased from 33.82 to 48.36.
6. RoE is 17.3% in FY23 up from 15.6% in FY22
Tata Capital Unlisted Shares are currently being offered at a price range of INR 550 to INR 600 per share. As of 31st March 2023, the book value of Tata Capital stands at approximately INR 50 per share. This implies a Price-to-Book (P/B) ratio of more than 11x, which appears to be significantly higher compared to the common P/B ratios observed in the financial world of NBFCs, Banks, and SFBs, where listed shares typically trade at a P/B ratio below 5.
The elevated P/B ratio of Tata Capital raises concerns about the sky-high valuation of the stock. It is essential to exercise caution and prudence when considering an investment in this stock, especially given the discrepancy in valuation compared to industry norms. It is advisable to carefully assess the potential risks and rewards associated with investing in Tata Capital Unlisted Shares before making any decisions.
https://youtu.be/yw4o80P28Lw
9MFY24 Results of Tata Capital
Particulars (In Cr) | 9MFY24 | 9MFY23 |
NII | 11788 | 8,478 |
Revenue from Operations | 12774 | 9082 |
Employees Benefit Expenses | 1328 | 902 |
Other Expenses | 1064 | 785 |
Operating Profit | 10382 | 7395 |
Other Income | 415 | 176 |
Depreciation | 213 | 171 |
Finance Cost | 6887 | 4679 |
PBT | 3697 | 2721 |
Provisioning | 303 | 359 |
Profit After Provisioning | 3381 | 2470 |
Tax | 819 | 609 |
PAT | 2562 | 1861 |
₹900
*Best In Industry
Find answers to common questions that you may have in your mind.
Please find below the procedure for buying TATA Capital Unlisted Share at UnlistedZone.
Please find below the procedure for selling TATA Capital Unlisted Share at UnlistedZone.
The lock-in period for TATA Capital Unlisted Share varies depending on the category of investors:
This regulation was introduced by SEBI in August 2021. The rule change, which reduced the lock-in period from one year to six months, was aimed at encouraging more investments in startups that are preparing for public offerings or IPOs. This reduction in the lock-in period is seen as a significant step forward, and since its introduction, many Portfolio Management Services (PMS) have been advising their clients to invest in Pre-IPO shares to capitalize on the benefits of early-stage investments.
DIS, or Delivery Instruction Slip, is a tool used by investors to sell or transfer TATA Capital Unlisted Share from their demat account to another. There are two types of DIS Methods:
1. Offline-DIS: This is a traditional, paper-based method for transferring shares. When using Offline-DIS, investors are required to fill out a DIS form and submit it to their broker. The necessary fields in the form include:
a. ISIN number of TATA Capital Unlisted Share.
b. Name of TATA Capital Unlisted Share.
c. Quantity of TATA Capital Unlisted Share.
d. Consideration Amount.
e. Target DP ID and Client ID.
f. Annexure.
2. Online DIS: Some brokers offer the facility to transfer TATA Capital Unlisted Share through an online DIS system. It's advisable to check with your broker if such a facility is available.
For instance, platforms like Angel Broking provide an Online-DIS feature. In this method, an investor simply needs to add a beneficiary and transfer TATA Capital Unlisted Share by filling in details similar to those required in the Offline-DIS.
For a more comprehensive understanding of this process, you can refer to our detailed article: https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/
In recent years, the unlisted share market has expanded significantly, leading to a reduction in the minimum investment amount. Previously, the typical investment ticket size ranged from 5-10 Lakhs, but in the current market scenario, it has decreased to between 35-50k. Therefore, through our UnlistedZone platform, if someone wishes to invest in TATA Capital Unlisted Share, the minimum investment required would now be in the range of 35-50k
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates:
Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favorable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period:
The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance.
When you purchase TATA Capital Unlisted Share through UnlistedZone, it's important to note that, as per SEBI regulations, these shares can only be transferred to a demat account.
There are two primary ways to check the credit of TATA Capital Unlisted Share in your account:
1. Using NSDL or CDSL Applications:
Download the NSDL or CDSL application from the Google Play Store.
To determine whether your stock broker is registered with NSDL or CDSL, you can examine the format of your Demat Account number. The Demat Account number consists of 16 characters, combining the DP ID and Client ID.
DP ID is the unique identification number of the Broker, assigned by CDSL or NSDL.
Client ID is the unique identification number of the Client, representing their portfolio.
In CDSL, the Demat Account number is entirely numeric (e.g., 12345678 for DP ID and 91234567 for Client ID).
In NSDL, the first two characters are alphabetic, representing the country (e.g., 'IN' for India), followed by a 6-digit unique number for the Broker (DP ID) and an 8-digit Client ID (e.g., IN123456 for DP ID and 78912345 for Client ID).
2. Checking in Broker's Application:
The credit of TATA Capital Unlisted Share can also be checked in your broker's application. However, it's important to note that it may take T+2 days for the shares to show up in the application after the transaction.
The TATA Capital Unlisted Share are credited in the demat account on the same day as the transfer of funds into our company's bank account.
"The price of TATA Capital Unlisted Share can be checked in two ways. First, you can join our Telegram channel, where we share the latest prices of all unlisted shares daily in the morning. Secondly, you can check price on our UnlistedZone platform to view historical graphs and prices of all shares in one place."
Investing in TATA Capital Unlisted Share, like any investment, carries certain risks that should be carefully considered:
1. Liquidity Risk: Unlisted shares, by their nature, are not traded on public stock exchanges. This can result in lower liquidity compared to listed shares, meaning it might be more challenging to find buyers when you wish to sell your shares.
2. Price Volatility: The price of TATA Capital Unlisted Share can be more volatile compared to listed shares. This is partly due to the lack of regular public trading and potentially limited information available about the company's financial health and performance.
3. Regulatory Risk: Unlisted shares are subject to different regulatory frameworks than listed shares. Any changes in regulations or compliance requirements can impact the value and tradeability of these shares.
4. Limited Information: There may be less publicly available information about unlisted companies. This can make it more difficult to assess the company's true value and potential for growth, increasing the risk of investment.
5. No Guarantee of Future Listing: Investing in TATA Capital Unlisted Share with the expectation of future listing on a public exchange carries the risk that the listing may not occur. This can affect both the liquidity and potential value appreciation of the shares.
6. Company-Specific Risks: Each company has its own set of risks based on its industry, management, financial health, and market position. These risks can significantly impact the performance of your investment in TATA Capital Unlisted Share.
UnlistedZone: Pioneering Excellence in India's Unlisted Share Market
UnlistedZone stands as India's fastest-growing and leading marketplace for buying and selling unlisted shares. Over the past 5 years, we have carved a niche in the financial market, website hit user inflows over a 2 million users on our platform since inception. This remarkable journey is underscored by the sheer volume of transactions facilitated through UnlistedZone, which has already surpassed the 300 Crore mark.
At the helm of our success are our esteemed co-founders, Mr. Umesh Paliwal and Dinesh Gupta. Their insights and expertise are regularly sought after by leading financial publications such as MoneyControl, Business Standard, and The Economic Times, particularly for their authoritative views on IPOs and the unlisted market. Our journey over these 5 years has not just been about numbers; it's been about building trust and reliability.
UnlistedZone has established a formidable reputation in the industry, earning the trust and confidence of our users. This trust is our cornerstone, ensuring that new investors can engage with us without the apprehensions of fraud that are often associated with unknown brokers in the market.
At UnlistedZone, we are committed to maintaining the highest standards of transparency and integrity, ensuring that your investment journey is not just profitable but also secure and trustworthy.
Valuation Methodology at UnlistedZone for TATA Capital Unlisted Share
At UnlistedZone, we employ a meticulous and strategic approach to valuing TATA Capital Unlisted Share, utilizing two primary methods: Benchmark Valuation Based on Latest Funding:
1. Our first step is to examine the most recent funding round for TATA Capital Unlisted Share. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts. This method is particularly effective in capturing the latest market sentiment and financial health of the company.
2. Comparison with Listed Peers: In cases where there hasn't been recent funding for TATA Capital Unlisted Share, we adopt a comparative approach. This involves identifying a business in the listed market that closely resembles TATA Capital Unlisted Share in terms of industry, size, and business model. By comparing and contrasting the two, we can ascertain a fair valuation for TATA Capital Unlisted Share, drawing on the market data and performance metrics of its listed counterpart.
Investor Advisory: As experts in the unlisted space, we at UnlistedZone emphasize the importance of thorough risk assessment to all our investors. It's crucial to evaluate all risk parameters carefully before investing in unlisted shares. This due diligence is key to making informed and strategic investment decisions in the dynamic and evolving unlisted market.
"At UnlistedZone, our approach to sourcing TATA Capital Unlisted Share involves a strategic and direct method. Primarily, we acquire these shares from two key groups:
1. Employees of the Company: Often, employees of a company receive shares as part of their compensation or through employee stock option plans (ESOPs). Over time, some of these employees may decide to liquidate their holdings for various reasons, such as financial needs or portfolio diversification. We engage with these employees, providing them a platform to sell their shares.
2. Initial Investors: These are the early-stage investors or angel investors who provided capital to the company during its initial phases. As the company grows and evolves, these initial investors might look to sell part or all of their stake in the company. This could be for reasons like capitalizing on their investment, reallocating assets, or other strategic financial decisions.
By connecting with these groups, UnlistedZone ensures a reliable and consistent supply of TATA Capital Unlisted Share for our clients. This method not only helps employees and initial investors in liquidating their assets but also provides our clients with access to shares that are not readily available in the public market. It's a win-win for both the sellers and buyers, facilitated efficiently through our platform."
"The Securities and Exchange Board of India (SEBI) does have a regulatory influence on the unlisted market, though it's not as comprehensive as its oversight of the listed markets.
Key aspects of SEBI's involvement in the unlisted space include:
1. Applicable Rules and Regulations: Certain SEBI regulations are indeed applicable to transactions in the unlisted market. This includes the mandatory lock-in period of 6 months, the requirement to pay stamp duty, and depository participant (DP) charges for every transaction. These measures are in place to ensure a certain level of standardization and protection in the unlisted market, similar to those in the listed markets.
2. Lack of Specific Regulation for Unlisted Brokers: As of now, SEBI does not have specific regulations for becoming an unlisted broker. This means that while certain SEBI rules apply to transactions within the unlisted market, the process of becoming a broker in this space is not directly regulated by SEBI. This lack of direct regulation highlights the importance of due diligence by investors when engaging with brokers in the unlisted market.
3. Investor Protection and Transparency: The regulations that do apply, such as the lock-in period and transaction charges, are designed to protect investors and add a layer of transparency to these transactions. They aim to mitigate some of the risks inherent in trading unlisted securities, which typically don't have the same level of public scrutiny and regulatory oversight as listed securities. In summary, while SEBI's regulatory framework does extend to certain aspects of the unlisted market, it does not comprehensively regulate all aspects of it, particularly concerning the accreditation of unlisted brokers. This underscores the need for investors to exercise caution and conduct thorough research when participating in the unlisted market."
"For comprehensive and up-to-date news and information about TATA Capital Unlisted Share, we have several platforms to keep you informed. Our website is regularly updated with the latest insights and developments. For real-time updates and engaging discussions, you can join our Telegram channel. Additionally, follow us on Twitter for quick news bites and industry trends. And for more in-depth analysis and informative content, subscribe to our YouTube channel. These resources are designed to provide you with a well-rounded understanding of the unlisted market, ensuring you have access to all the information you need about TATA Capital Unlisted Share."