Tata Sons, the parent company of the Tata group, is likely to get listed soon, which could make it India’s biggest one yet.
Tata Sons IPO By September 2025
After being classified as an ‘upper-layer’ NBFC (Non-Banking Financial Company) by RBI last week, Tata Sons needs to gear up for its share listing on or before September 2025.
As per the RBI guidelines, it is mandatory for an ‘upper-layer’ NBFC to list within three years of being notified. On September 14, 2023, RBI notified 15 financial companies in the ‘upper-layer’ NBFC category, which includes Tata Sons. In fact, RBI has classified another Tata group company Tata Capital Financial Services in ‘upper-layer’ NBFC but it won’t require listing as it is reportedly merging with Tata Sons.
Estimated to be a ₹11 lakh crore company, if Tata Sons decides to list via initial public offering (IPO) by offloading 5 per cent of its shares, its IPO size would come to around ₹55,000 crore. This means Tata Sons IPO could be the biggest IPO in India.
Also Read: Inside Tata Group’s 99-Year-Old Headquarters, The Bombay House
What RBI Guidelines Say About IPO Necessity
As per the RBI norms, it is mandatory for a non-listed ‘upper-layer’ NBFC to list within three years of being classified as ‘upper-layer’ NBFC. As per a Mint report, after being classified, the NBFC would require more stringent and greater regulatory compliance.
Last week, the RBI classified 15 NBFCs as ‘upper-layer’ NBFCs, including LIC Housing Finance, Bajaj Finance, Shriram Finance, L&T Finance, Piramal Capital & Housing Finance, Indiabulls Housing Finance, Mahindra & Mahindra Financial Services, PNB Housing Finance, Aditya Birla Finance, Muthoot Finance, Bajaj Housing Finance, HDB Financial Services and Cholamandalam Investment and Finance Company.
Also Read: List Of Tata Group Chairmen
Which Is India’s Biggest IPO At Present?
The biggest IPO in the history of Indian markets yet has been LIC, which was listed on May 17, 2022. LIC’s Rs 21,000 crore, however, disappointed the investors not just on listing day, but even afterwards as well. It has hit all-time lows multiple times. LIC share price has been down 5.7% this year to date, and down nearly 20% since its IPO.
Currently trading at Rs 668.5, LIC share price has seen an all-time low of Rs 530.05 (March 29, 2023), and an all-time high of Rs 754.25 (20th December 2022), on NSE.
Also Read: List Of Tata Group Companies That Originally Had Different Names
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