Tata is one of the biggest companies in India. It’s a conglomerate that has its footing in pretty much every sector in India. When a company is so big and has so many subsidiaries, it’s normal to have an underperforming company under its belt. In the case of Tata, that company is Tata Capital Limited which is an NBFC (Non-Banking Financial company). The company has been under tremendous debt for a long time. Tata Capital Limited’s lending book reached a whopping ₹75,000 crore. To deal with this Tata Sons started a fundraiser and raised around ₹11,000 crores, out of which ₹3,500 crores came from Tata Sons.
This was done in 2021, since, Tata capital share prices have risen a fair bit, but the company is still in dire straits and looking for another fundraiser for the company. Until 2021, Tata Sons had invested ₹3500 crore in its unlisted financial arm. This new fundraiser is expected to come from foreign sources in the form of dollar bonds and other methods.
FY24 Fundraiser Of Tata Capital
After the previous fundraiser, Tata Capital stock prices have risen. Now, the company is looking forward to another fundraiser in 2024. Tata Sons expects to raise around ₹28,000 crore through this fundraiser. Another reason to do this is that it generates confidence among investors, which in turn increases Tata Capital share prices. On top of that, this fundraiser will help the company increase its AUM (Assets Under Management) by opening more branches throughout India. The MD and CEO of Tata Capital. Rajiv Sabharwal said the company is looking to open around 200 to 500 new branches across India. Additionally, the company also wants to expand its portfolio into educational financing.
An Sneak Peak At Tata Capital Financials
Tata Capital is one of the top NBFCs in India, still, it has struggled with its financials in the past. If we look at the past 5 year’s financials of Tata Capital, we’ll see that, except for 2023, there hasn’t been significant growth in its financials. No doubt, there is growth, but it’s not significant. However, in 2023 the financials of the company are looking much more stable and investment-worthy than before. All thanks to the fundraisers, Tata Capital was able to make a profit after 2021.
The significance of the fundraiser can be seen in the financial metrics of the company. For the year 2021, the company’s total revenue was ₹9,987 crores, while in 2022 and 2023, this amount got up to ₹10,252 crores and ₹13,637 crores. So by this, you can see that the company’s revenue hasn’t changed much. In 2022, the revenue increased by a mere ₹265 crore but in 2023, the revenue raised by ₹3,385 crore, which is around a 33% increase.
If we look at other metrics like PAT (Profit After Tax), this has also increased significantly. In 2021, the PAT of Tata Capital was ₹1244 crores. This went to ₹1800 crores in 2022 which is a 44% increase. In 2023, the PAT went up to ₹2,946 crore which is a 63% increase from last year. This shows that the fundraiser by Tata Sons did its job of putting Tata Capital back on track. When it comes to Tata Capital stock prices, they too have risen since 2021. In 2021, Tata Capital share price was around ₹375, which increased to ₹400 in 2022 and reached an all-time high of ₹620 in 2023. This shows that the company has performed quite well in this year.
Should You Invest In Tata Capital Unlisted Shares?
Although it had a long stint of not performing well. It is safe to say that Tata Capital is back on its feet by looking at the Tata Capital stock price. The previous year’s metrics we mentioned above, clearly state that the company has seen tremendous growth in the last 12 months. One of the reasons for this success is the fundraising done by Tata Sons.
However, before buying any unlisted share from the market, make sure you go through the company’s financials. Unlisted share prices in the markets directly depend on the financial performance of a company. A poor financial performance will be reflected in the unlisted share prices. It’s highly recommended to go through all the financial reports of previous years.
If you have trouble finding these financial metrics, don’t worry, Stockify is there to help you. It is a trusted online trading platform that lets you buy and sell unlisted shares easily and safely while providing the basic financial metrics to make an informed decision. If you are also looking to buy or sell unlisted shares, make sure you do it through a trusted trading platform like Stockify.