India’s largest conglomerate, Tata Group, is considering more public issues to finance its burgeoning ventures. With firms like Tata Capital, Tata Autocomp Systems, Tata Passenger Electric Mobility, BigBasket, Tata Digital, Tata Electronics, Tata Housing, and Tata Batteries, Tata Group aims to tap the capital markets over the next three years. The recent sale of a stake in TCS for Rs 9,300 crore suggests a strategic pivot towards this direction.
One official from Tata Group said, “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 the purpose of either offering exit opportunities to existing investors or unlocking value. But there are no deadlines; decisions will be well thought out,”
Tata Motors Plans Spinoff Amid IPO Surge
Tata Motors, a subsidiary of Tata Group, plans to split its passenger and commercial vehicle businesses into two listed companies. This move aims to unlock the value of its electric vehicles and Jaguar Land Rover unit. The proposal, pending board approval, assures no adverse impact on employees, customers, or business partners. Shareholders will retain identical holdings in both entities.
Overall, there are 8 Tata businesses, that can launch their IPOs in the next 2-3 years.
Another unnamed official said, 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,”
