Tata is an Indian brand whose name has been known to everyone for decades. The business empire of the Tata Group is so vast that you will hardly find anyone who has not used Tata products in some form or the other in his life. From salt used in everyday cooking to software used to perform complex tasks, Tata’s treasury has it all. Tata has achieved many great achievements in its more than 100-year history and now the group is on the verge of creating a record in the stock market, which has never been done before. IPO came 19 years ago. We are talking about IPO. Many shares of Tata are already listed on the stock exchange. Tata Group’s last IPO came almost two decades ago when the group’s IT company TCS entered the market. After this, new IPOs will come from the house of Tata Group. At present, the name of Tata Technologies’ IPO is being discussed for months.
Meanwhile, recent regulatory changes have paved the way for another IPO by the Tata Group. The need arose due to the Reserve Bank, now the new IPO that can come from Tata Group will be of the holding of Tata Sons Group. The Reserve Bank has made some changes in the rules. Under the change, the Reserve Bank has placed Tata Sons in the top tier NBFC category. Tata Sons is considering options to avoid this classification. The easiest option in this case is to get listed on the market. If Tata Sons chooses to list on the market, it will need to launch an IPO to do so. The size could be so big Under current rules, Tata Sons has 2 years to list in the market. This means that Tata Sons will have to launch the IPO before September 2025. At present the value of Tata Sons is estimated at around Rs 11 crore. If the IPO happens, many shareholders of Tata Sons, including Tata Trust, will have to reduce their stake by 5%. At present, Tata Trust has the highest stake of 66% in Tata Sons. If calculated accordingly, the value of IPO with 5% stake is around Rs 55 billion.
