Upcoming Tata Group IPOs in Details
After the IPO of TCS in the year 2004, the Tata group had come out with its first IPO in nineteen years when it listed Tata technologies in November 2023. And now, after the bumper IPO of Tata Technologies, the Tata group is set to launch more IPOs soon.
Over the past year, several companies within the Tata Group have delivered remarkable returns, propelling the conglomerate’s market value to an impressive US$ 365 bn or Rs 30.3 trillion (tn).
While current Tata stocks might seem expensive for some investors, exciting news awaits. The group plans to list five new companies through Initial Public Offerings (IPOs) in 2024.
Thes remarkable returns have been fueled by the success of companies such as Tata Motors and Trent, along with robust performances from Titan, TCS, and Tata Power.
List Of Tata Group IPOs Coming Up Soon
- Tata Autocomp Systems
- Tata Sons
- Tata Advanced Systems
- Bigbasket
- Tata Play
- Tata Passenger Electric Mobility Ltd (TPEM)
- Tata Capital
1. Tata Autocomp Systems
Tata Autocomp Systems (TACO), with the formal process expected to begin later this year. TACO is owned fully by Tata Group entities with direct holding by Tata Sons, which owns around 21% while the remaining is held by Tata Industries Ltd. TACO was founded in 1995 and operates as the vehicle for the group’s ventures in the auto components business.
The company has 51 manufacturing facilities spread across India, North America, Latin America, Europe, and China. It is primarily involved in the design, development, manufacturing, and supply of auto component products and services to both passenger and commercial vehicle manufacturers under the brand name “AUTOCOMP”.
In 2023, Tata Autocomp Systems’ revenue shot up by 56.5% to INR 11,170 crore from INR 7,133 crore in 2022. Similarly, profits rose from INR 466.3 crore in 2022 to INR 783 crore in 2023.
Looking ahead, the company is exploring partnerships with battery manufacturers and charging infrastructure providers.
2. Tata Sons
Tata Sons is the investment holding company of the Tata Group.
Tata Sons, the main firm of the Tata Group, is scheduled to undergo another massive initial public offering. Following the RBI’s classification of Tata Sons as a “upper-layer” NBFC (Non-Banking Financial Company) last year, the company must pursue a public listing by September 2025 at the latest. It is anticipated that Tata Sons’ IPO will rank among the largest in India, if not the largest.
The Tata Group comprises over 100 operating companies in seven business sectors: communications and information technology (IT), engineering, materials, services, energy, consumer products and chemicals.
The company has been classified as an upper-layer non-banking financial company (NBFC), supporting and promoting other Tata Group businesses.
3. Tata Advanced Systems
Founded in 2007, Tata Advanced Systems Limited is a wholly-owned subsidiary of Tata Sons, and is the strategic Aerospace and Defance arm of the TATA Group. It offers services in aerostructures & aero-engines, airborne platforms & systems, defance & security, and land mobility.
In the financial year 2023, Tata Advanced Systems generated a revenue of INR 3,527 crore which is 15.7% up from the previous year and the profits increased from INR 25.46 crore to INR 34.73 crore in 2023. Given the strong investor interest in defence and space technology companies in the recent past, Tata Advanced Systems IPO will be surely closely watched.
India’s red hot IPO market saw as many as 60 main board listings in 2023, with average returns of 28.16% on the first day of public trading. In fact, Tata Technologies topped the list of best IPOs in 2023 with first-day returns of 162.6%. Given this backdrop, it is not wrong on the investors’ part to eagerly anticipate these upcoming Tata IPOs.
Initially, tata Motors owned TASL as part of its defance business, but later divested the defance business, and TASL is now directly owned by tata Sons.
4. Bigbasket
In December 2022, it was revealed by Bigbasket’s Chief Financial Officer Vipul Parekh that tata group owned company is expected to launch an initial public offering in 24 to 36 months, implying that Big basket’s IPO can be expected in second of 2024 or early 2025.
The company’s platform provides an easy relaxed way of browsing and shopping for groceries.
The company plans to augment the number of dark stores supporting BB Now, its quick commerce format that pledges deliveries of essential household items within a 30-minute time frame.
With a target to achieve profitability within six to nine months, Big Basket’s slotted grocery delivery business is currently in the black, while its daily business (BB Daily) is nearing profitability.
5. Tata Play
Tata Play was incorporated in 2001 and initiated services in 2006. It is one of India’s leading content distribution platforms providing Pay TV and OTT services. As of March 2023, according to Telecom Regulatory Authority of India, Tata Play serves 21.3 million subscribers which is 32.65% of total DTH users in India.
The company received approval from the SEBI board in May 2023 and was planning to launch the IPO last year. However, the public offer got delayed and the management is now targeting a stock market listing this year. The IPO dates are yet to be announced.
Tata Play (formerly Tata Sky) is also set to go public with its IPO expected this year. It has already received a green light from SEBI to proceed with the IPO. However, the timeline and details of the IPO still remain uncertain, but it is expected to happen this year.
In FY 2023, Tata Play reported a net loss of INR 105 crore as compared to a net profit of INR 68.6 crore in FY 2022. The company swung to a loss as a result of a 5.1% decline in revenue from operations to INR 4,499 crore in FY 2023.
6. Tata Passenger Electric Mobility Ltd (TPEM)
The Tata group intends to list the EV unit for $1–2 billion in the next 12–18 months, or by FY25 at the latest, through IPO, “if business climate for EVs remains robust and the overall market sentiments is positive”.
In an effort to profit from its investments in the electric vehicle (EV) industry, the Tata Group is also considering listing of Tata Passenger Electric Mobility Ltd (TPEM), the company that manufactures EVs.
Tata Passenger Electric Mobility Limited (“TPEML”), a subsidiary of Tata Motors Limited (“TML”), and Ford India Private Limited (“FIPL” and together with TPEML, “Parties”) had executed a Unit Transfer Agreement on August 7, 2022 for acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat, which inter-alia includes:-
(i) entire land & buildings (“Sanand Property”); (ii) Vehicle Manufacturing Plant along with machinery and equipment situated therein (“VM Plant and Machinery”); and (iii) transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand (“Eligible VM Employees”), for a total consideration, exclusive of taxes, of Rs 725.7 Cr (Seven Hundred Twenty Five Crores and Seventy Lakhs) (“Transaction”).
7. Tata Capital
Tata Capital, a subsidiary of Tata Sons Limited, was established in 2007. The company is registered with the Reserve Bank of India as a systemically important deposit accepting non-banking financial company.
Tata Capital Limited (“TCL”), the flagship financial services company of the Tata Group, is a subsidiary of Tata Sons Private Limited and is registered with the Reserve Bank of India as a Systemically Important Non-Deposit Accepting Core Investment Company (“CIC”).
Tata Capital has been profitable since its inception and currently has a loan book of INR 1,20,940 crore, with secured loans accounting for 76%. It has wide presence across India serving over 3.3 million customers through its 438 branches. During FY 2023, the company posted its highest ever profits of INR 2,975 crore, marking a sharp growth of 80% Y-o-Y.
As of now, there is no official valuation for the upcoming Tata Group IPO, but it is aiming for a valuation similar to Jio Financial Services, the financial arm of Mukesh Ambani’s Reliance Jio, which was around INR 10,000 crore in 2023.
The IPOs offer you an advantage to buying the growing company’s ownership at a very reasonable price which you can afford also. The prosperity of the same company with the time being increases its market capitalization thereby increasing the price value of shares.
Your early purchased shares benefit you at this time because you can sell your shares at a very good selling value when the company’s stocks are reaching its high value.
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