The Tata Group is reportedly considering selling its 5% stake in Tata Sons which is the holding company, through an initial public offering (IPO). According to Kotak Securities’ report released on Thursday 29th February 2024 Tata Sons aims to raise approximately INR 55000 Cr at an estimated valuation of INR 11 trillion i.e. USD 147 Billion Approx.
IPO in order to comply the RBI Norms of NBFC
The company is categorised as an “upper-layer” non-banking financial holding company by the Reserve Bank of India (RBI) and is mandated to be listed on the stock exchange by September 2025 to comply with the RBI norms.
Biggest IPO in the History of India
The potential IPO is about to be one of the most significant in India’s IPO history. And if launched it could lead to the exit of Shapoorji Pallonji Group which holds around 18.4% shares in the Tata Sons.
Furthermore, Kotak Securities is also of the view that 4 of the Tata Sons’ entities may join the IPO line to raise funds. These entities include Tata AutoComp (a battery storage company), BigBasket (Tata’s online Grocer), Tata Advanced Systems (an Aerospace Company) and Tata Play (A satellite distribution company).
Tata Play, in which Tata Sons holds a substantial 41.5% stake, has already filed a confidential draft red herring prospectus or DRHP with the Securities and Exchange Board of India (SEBI).
Adani & Reliance Group are also planning for IPO of its Group Companies
The news of Tata Group’s potential IPO comes amidst a flurry of activity in India’s IPO market. The Adani Group and Reliance Industries are reportedly planning IPOs for their unlisted companies, buoyed by a positive market sentiment. Additionally, Vodafone Idea, a telecom firm grappling with losses, announced plans to raise INR 20,000 crore through the sale of new shares earlier this week.
As anticipation builds around the IPO plans, industry observers are closely monitoring developments within the conglomerate and the Indian IPO market at large.
Also Read: NCLT Orders BYJUs to Secure Funds – NewsStreetAsia
Disclaimer
The content of this article is only for informational purposes and we do not offer any investment advice from our end. Please consult a SEBI-registered investment advisor before making any investment decision. The information does not necessarily reflect the views/opinions of the publisher.
