Tata Motors completes Iveco acquisition, securing 89.42% stake; buyback of remaining shares continues

The initial public offering of Jio Platforms led to a significant increase in the value of the company and its parent structure, Reliance Industries Ltd. Jio shares rose by 23% on the first day of trading on Wednesday, providing the company with a valuation exceeding 12.5 trillion rupees ($131.4 billion).

This growth raised the total market capitalization of Reliance Group above 30 trillion rupees, allowing it to surpass Tata Group, whose valuation stood at 25 trillion rupees, according to Bloomberg News. Previously, Tata Group had held the position of market capitalization leader for most of the last decade.

After its listing, which became the largest Initial Public Offering (IPO) in India, Jio also overtook its closest competitor in the telecommunications sector, Bharti Airtel Ltd, becoming the sixth-largest telecom company globally. Currently, Jio is the second-largest company in India by market capitalization, trailing only its parent company, Reliance Industries.

For Ambani, the debut of the offering was a significant moment, as he, along with four generations of his family, from mother to grandchildren, rang the opening bell. The $3.1 billion IPO was fully subscribed in less than 100 minutes and received applications for 22 times the offered shares. This strong market start signaled the potential to overcome the poor momentum of mega-IPOs in India.

Shankar Sharma, founder of GQuant Investech, noted: 'Sometimes a large offering can change the mood of the investing nation, and we all hope that Jio will do this for the Indian market.'

Despite the success, Reliance Industries shares have declined by 25.4% this year, while the benchmark index NSE Nifty 50 has fallen by almost 13.3%. However, the newly listed telecommunications giant must wait several months before it can be included in major Indian stock indices such as the Nifty 50. Stock exchanges must first introduce derivative instruments for the shares for them to become candidates for inclusion in these indices.

Tata Capital announced on Tuesday a 51 percent increase in consolidated net profit, reaching 1,660 crore rupees for the September quarter of the fiscal year 2027. Previously, the company reported a net profit of 1,097 crore rupees for the period from July to September of the fiscal year 2026.

According to the report submitted to the regulatory authority, total income increased by 24 percent, amounting to 4,676 crore rupees in the September quarter of 2027, compared to 3,774 crore rupees for the same period a year earlier.

Rajiv Sabharwal, Managing Director and CEO of Tata Capital, noted that the company's loan portfolio exceeded 3 trillion rupees, highlighting the scale, diversification, and resilience of the company's franchise.

The Assets Under Management (AUM) of this non-banking lender reached 308,030 crore rupees, demonstrating a 26 percent year-on-year growth. Sabharwal also stated that asset quality remained stable, reflecting the company's continuous focus on portfolio quality, prudent underwriting, and effective collections.

Furthermore, in a separate filing with the stock exchange, Tata Capital announced that its board of directors approved a proposal to increase the existing medium-term bond program from USD 2 billion to USD 3 billion. Subject to market conditions, the issuance of foreign currency bonds/debt instruments will be carried out under the MTN Program through external commercial borrowings.

The company operates an all-India network of 1,515 branches, covering 26 states and union territories. Tata Capital shares closed on BSE 0.45 percent higher, at a price of 300.80 rupees per share.

Reserve Bank of India (RBI) Governor Sanjay Malhotra announced on Friday that companies classified as Central Investment Companies (CIC) which access public funds, directly or indirectly, are required to register with the central bank. Furthermore, top-tier Non-Banking Financial Companies (NBFCs) must be included in the stock exchange listings.

These statements came amid discussions regarding whether a public offering is required for Tata Sons, the holding company of India's largest conglomerate, the Tata Group.

Malhotra noted at the NDTV World summit in New Delhi: 'We do not answer questions concerning any specific regulated entity.' However, he added that NBFCs and CICs, such as Tata Sons, are required to register with the RBI due to systemic risks. This is because they are at the top of group companies where they can raise funds by using the balance sheets of these companies for repayment.

When separately asked about the rules governing top-tier NBFCs, Malhotra clarified: 'As long as it is an NBFC within our definition, it is a CIC, it has access to funds, directly or indirectly, it is obligated to be registered, and if it is at the top tier, then it is obligated to be listed.' He also emphasized that registration is only not required if the CIC does not have direct or indirect access to public funds.

The central bank classified Tata Sons as a top-tier NBFC in 2022, granting the company three years until 2025 to go public. Instead, the company repaid its outstanding debts and requested the cancellation of its CIC registration. Nevertheless, last month, the RBI rejected this request and demanded that Tata Sons comply with the requirements applicable to top-tier NBFCs.

For its part, Tata Trusts, which controls Tata Sons, proposed merging Tata Electronics Systems Solutions (TESS) and Tata Consulting Engineers (TCE) into a holding company. The goal of this proposal is to avoid an Initial Public Offering by restructuring Tata Sons in a way that, according to the Trusts, would cause it to cease meeting the criteria for an NBFC or CIC. This plan requires approval from the Tata Sons board of directors and consent from the RBI.

Turning to monetary policy, Malhotra stated that the RBI generally does not use interest rates to solve financial stability issues, relying instead on macroprudential measures. However, he did not rule out the possibility of applying monetary policy in certain situations, noting that the decision remains with the Monetary Policy Committee (MPC). He added that the effectiveness of such intervention would depend on the circumstances and would be reviewed by the MPC.

In its latest meeting this month, the MPC raised the key repo rate by 25 basis points to 5.50 percent and changed its stance from neutral to 'calibrated tightening.' The Governor also acknowledged growing cybersecurity risks to the financial system, as banks report data breaches in the dark web. Separately, he expressed concern over the impact of Artificial Intelligence (AI) on financial stability, stating: 'These risks are real. They cannot be ignored, so I will not downplay these risks.'

Malhotra highlighted two main areas of concern: data security and cyberattacks capable of disrupting or disabling systems. He noted that the RBI has a robust regulatory and supervisory system to address both issues, but the rapid pace of software development means vulnerabilities may continue to emerge.