Tata’s IPO will break all records
Tata Group; Tata Sons, the major investment holding and promoter of the Tata Group, is preparing for its IPO. After the new rule of RBI, it has become mandatory for Tata Sons to launch IPO. As per RBI guidelines, upper tier NBFCs (non-banking financial companies) are required to be listed on the market within 3 years of obtaining this status. RBI has declared Tata Sons as upper tier NBFC on September 14.
15 companies have been included in the list released by RBI but the topic of discussion is Tata Sons. Because if Tata Sons’ IPO comes, it will be India’s biggest IPO till date. At present this title is with LIC. LIC’s IPO was worth Rs 21 thousand crores. Tata Sons’ IPO is expected to be more than double this.
Why is this speculation happening?
Actually, Tata Sons is a company worth Rs 11 lakh crore. To launch an IPO, any company has to sell at least 5 percent stake. If this happens then the IPO of Tata Sons will be worth Rs 55 thousand crore. This is the reason why Tata Sons’ IPO has become a big topic of discussion. Even if some other company comes up with a bigger IPO by then, it will definitely be one of the biggest IPOs.
What is the other option?
It is also possible that Tata Sons may not have to launch an IPO. Saurabh Jain, vice-president, SMC Global Securities, says if Tata Sons comes out of the RBI’s NBFC upper layer list through restructuring, the company will be saved from launching an IPO.
5 biggest IPOs ever
LIC is at the top position with Rs 21,000 crore so far. Paytm’s parent company One97 Communication is in second place. Its IPO was worth Rs 18300 crore. The third largest IPO of Rs 15200 crore was launched by Coal India. This IPO came in 2010. Reliance Power Rs. 11700 crores at fourth place and GIC Rs. It is in fifth place with Rs 11257 crore.
