Tata Groups is considering the listing of financial arm Tata Capital next year to comply with Reserve Bank of India (RBI) norms, the report claimed.
Tata Group may push several initial public offerings (IPOs) in the next two to three years. The conglomerate has not opened a public issue in the past two decades but could reportedly launch some IPOs aiming to fuel growth and provide exit options for select investors, Economic Times reported quoting executives in the know.
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Which Tata Group companies could release IPOs?
Tata Capital, Tata Autocomp Systems, Tata Passenger Electric Mobility, BigBasket, Tata Digital, Tata Electronics, Tata Housing and Tata Batteries are among the companies that are being prepared for IPOs, the report claimed as Tata Group is aiming to expand new-age sectors like digital, retail, semiconductors and electric vehicle batteries.
As per the report, a person in the know said, “The decision to approach the capital markets is always strategic, and not really a plan to rush into an IPO for the sake of it.”
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Why is Tata Group looking into IPO options?
Meanwhile, an executive told the outlet, “Many of the businesses seeded over 20 or 25 years ago are now in a growth phase and in shape to be monetised. Also, calculated decisions are being taken by specific companies in discussions with Tata Sons. It will be with a purpose either to offer exit opportunities to existing investors or unlock value. But there are no deadlines; decisions will be well thought out.”
A former group director said as per the report, “Earlier, there was a conscious strategy to focus on overseas growth through acquisitions. A shift has happened where the growth is India focused largely. The group is taking bold bets on businesses that can scale up. But I do not see there will be a dramatic rush for IPOs by the group.”
The report also added that Tata Groups is considering the listing of financial arm Tata Capital next year to comply with Reserve Bank of India (RBI) norms.
