The year 2023 was an exciting year for investors, traders, and Initial Public Offering (IPO) enthusiasts as the year witnessed a remarkable listing number of IPOs with premium prices. India’s IPO market saw up to 57 IPO listings in 2023. Among these IPOs, Tata Technologies Ltd., which debuted in November 2023, listed at a premium of Rs 1400, an almost 140% listing gain, making the IPO the highest listing gain in 2 years and the greatest in 2023. Following the 2004 IPO of TCS, Tata Technologies was the first IPO of the Tata Group in nineteen years.
The Tata Group comprises over 100 operating companies in seven business sectors such as engineering, communications and Information Technology (IT), materials, services, energy, consumer products and chemicals.
The firm intends to list five new companies through initial public offerings (IPOs) in 2024 and 2025, according to industry analysts. Understandably, investors are looking forward to the Tata Group’s next IPOs, given the robust listing background of Tata Technologies in 2023.
Tata IPOs
Tata group IPOs, which are anticipated to debut soon enough, could catch your interest if you are eager to participate in their upcoming IPOs. Check the list below:
1 – Tata Sons
Tata Sons is the principal investment holding company and promotor of the Tata Group companies. According to ICICI Securities, the estimated value of Tata Sons is around Rs 11 lakh crore. Tata Sons is currently preparing for its IPO
On Sept 14, 2023, the Reserve Bank of India (RBI) announced that 15 financial firms, including Tata Sons, fall into this upper-layer NBFC category. Tata Sons has been asked to list the company on the Indian stock exchanges by September 2025 by the RBI. According to the RBI’s rules, when a company is designated as an upper-layer NBFC, it must go public within three years.
Size and the total IPO size are still speculation and not confirmed, but reports state it might be the biggest IPO in Indian history. However, given the size of Tata Sons, it is speculated that the IPO might surpass LIC’s IPO size.
2 – Tata BigBasket
Bigbasket (Innovative Retail Concepts Private Limited) is a Tata Enterprise that operates in the online grocery segment in India. The company is headquartered in Bangalore, Karnataka, India and is currently owned by Tata Digital, a Tata Group subsidiary.
Bigbasket is India’s largest online food and grocery store with over 18,000 products and over 1000 brands in its catalogue. The company’s platform provides an easy relaxed way of browsing and shopping for groceries. Moreover, BigBasket is exploring the expansion of its offline presence.
BigBasket is contemplating an IPO in 2025, with the decision contingent on its profitability trajectory. The funds generated from the IPO will be allocated to fortify its quick commerce division and extend its nationwide reach to solidify its market dominance.
The company plans to augment the number of dark stores supporting BB Now, BighBasket’s Quick Commerce arm. As a quick commerce platform, BB Now pledges deliveries of essential household items within a 30-minute timeframe.
3 – Tata Play
Tata Play (formally Tata Sky) is a leading player in the Direct-To-Home (DTH) business, with a market share of 33.2% in the DTH market. The company has three subsidiaries, which are Tata Play Broadband Pvt. Ltd., Active Digital Services Pvt. Ltd., and TSBB Voice Pvt. Ltd., according to the Tata Play website. The company also runs streaming platforms via Tata Play Binge, which houses around 17 OTT platforms.
The Tata Play IPO has garnered a lot of interest from investors, as it is the first company in the country to use the confidential pre-filing of documents option for its IPO with the market regulator in 2022.
In May 2023, the company got approval for an IPO from SEBI and intended to float the IPO in the same year. However, the IPO was postponed, and now the management plans to float the IPO on the stock market this year, according to market experts. The dates of the IPO are not yet known.
4 – Tata Advanced Systems
Incorporated in 2007, Tata Advanced Systems (TASL) is a wholly-owned subsidiary of Tata Sons that is eyeing an IPO in the coming years amid the thriving military and civil aviation sectors. TASL is the aerospace and defence arm of Tata Group, which focuses on aerospace and defence manufacturing, including military vehicles, radars, missiles, and unmanned aerial vehicles.
With a strong portfolio of partnerships and joint ventures with top aerospace and military companies worldwide, TASL is a crucial component of the global supply chain. In certain cases, the company stand as a global single-source supplier for top defence original equipment manufacturers. Moreover, by collaborating with industry giants such as Airbus, TASL enhances India’s military capabilities by developing new armaments and broadening its supply network.
5 – Tata AutoComp Systems
Tata Autocomp Systems (TACO), the manufacturer of vehicle components, might come up with an IPO. TACO is a wholly owned entity by Tata Group, with Tata Sons holding approximately 21% and the remaining stake held by Tata Industries Ltd.
As per the reports, the initially scheduled talks are centred around ascertaining, which Tata Group firms would sell their shares in TACO and the total number of shares to be sold in the initial public offering.
Initially, TACO attempted an IPO in 2011, but the attempt was unsuccessful due to poor market circumstances. After an unsuccessful attempt to enter the primary market in 2011, this would be the company’s most recent attempt.
Bottom Line
Tata IPOs may in the future thrill the market and prospective investors, even though some investors may find the company’s existing equities to be pricey. A number of the Tata Group’s businesses have delivered outstanding results in the last year. Together with strong results from several Tata Group companies such as Titan, TCS, Tata Power, and the recently listed Tata Technologies Ltd., the group’s businesses seem promising for IPOs. Nevertheless, Trent and Tata Motors also contributed to these astounding gains.