Tata Group’s holding company Tata Sons has spent thousands of crores of rupees to avoid the compulsion of bringing IPO and listing on the stock market. After RBI changed the rules, this was the only option for it to avoid listing on the stock market.
Tata Sons repaid the loan
According to an ET report, Tata Group’s holding company Tata Sons has repaid the loan of Rs 20 thousand crore and has voluntarily submitted its Certificate of Registration to RBI. This move of Tata Sons is being seen as a strategic effort to remain unlisted.
This is why IPO was needed
Actually, Reserve Bank had recently made some changes in the regulations. Reserve Bank had put Tata Sons in the category of upper-layer NBFC. After that it became necessary for the company to get listed in the market by bringing IPO. According to the rules, Tata Sons had time till September 2025 to get listed in the market. For this reason, speculations were being made in the market that Tata Group may bring an IPO of its holding company.
This is the current value of Tata Sons
If Tata Sons’ IPO had come, all the records of IPOs on the stock market would have been dwarfed in front of it. Currently, the value of Tata Sons is $ 410 billion. If the IPO had come, various shareholders of Tata Sons including Tata Trust would have had to reduce their stake by 5 percent. Tata Trusts currently hold the highest 66 percent stake in Tata Sons. At the rate of 5 percent, the value of the IPO would have been around $ 20.5 billion (about Rs 172 thousand crores in Indian currency).
Right now the record is registered in the name of LIC
Till now, even an IPO of Rs 25 thousand crores has not come in the Indian market. The record of the largest IPO in the history of the Indian market is currently held by the government insurance company LIC. LIC came up with an IPO of Rs 21 thousand crore in 2022, which is the largest IPO in the history of the Indian market.
LIC’s record is secured
However, the record of LIC’s largest IPO has been secured once again. Tata Sons was already considering options to avoid listing in the market. Now that the company has repaid the loan and returned the Certificate of Registration to the RBI, it is out of the condition of going public. In such a situation, Tata Sons is no longer compelled to bring an IPO.
