Tata Sons, the principal investment holding entity and promoter of Tata companies, is contemplating a strategic reduction of its ownership in Tata Capital. Currently, Tata Sons holds approximately 97% of Tata Capital's shares but is considering a gradual divestment to lower its stake below 50%, according to sources from ET NOW.

This move is in anticipation of a potential initial public offering (IPO) for Tata Capital, where Tata Sons plans to sell shares incrementally. The objective is to solidify Tata Sons' position as it seeks an exemption from the Reserve Bank of India (RBI)'s mandate, which requires both Tata Sons and Tata Capital to be publicly listed by September 2025 unless an exemption is granted.

Under RBI regulations, both Tata Sons and Tata Capital are classified as upper-layer non-banking financial companies (NBFCs), necessitating their listing unless they obtain a waiver.

Following the successful public offering of Tata Technologies, which garnered substantial investor interest, Tata Capital is also generating significant demand in the unlisted market. Reports suggest that Tata Capital's shares are trading around Rs 1,100 each in this market.

Tata Capital Limited, a subsidiary of Tata Sons, was established in 2007 with the vision of becoming a trusted, customer-centric, and one of the leading financial services providers in India. As part of the prestigious Tata Group, Tata Capital aimed to leverage the group's reputation and values to offer a wide range of financial products and services including commercial finance, consumer loans, infrastructure finance, wealth management, and investment banking.