Tata Sons IPO Poised for Record-Breaking Launch: Lot Size and Date?
“New Delhi: Tata Group Companies Preparing for Tata Sons’ IPO”
Tata Sons, the main holding and promoter company of Tata Group companies, is preparing to launch its IPO. After the new RBI regulations, launching an IPO for Tata Sons has become mandatory. According to RBI’s guidelines, an upper layer NBFC (Non-Banking Financial Company) must be listed in the market within 3 years. RBI has declared Tata Sons as an upper-layer NBFC on September 14.
“What’s the Reason for this Delay?”
In reality, Tata Sons is a company worth 11 lakh crores. To launch an IPO, any company needs to sell at least 5% of its shares. If this happens, Tata Sons’ IPO will be worth 55,000 crores, making it the largest IPO in India’s history. Currently, this honor belongs to LIC (Life Insurance Corporation of India), whose IPO was worth 21,000 crores. LIC’s IPO was the largest until now.
“What’s the Other Option?”
It’s also possible that Tata Sons may not need to launch an IPO. Saurabh Jain, Vice President of SMC Global Securities, says that if Tata Sons gets out of RBI’s upper-layer NBFC list through reorganization, the company can avoid launching an IPO.
“Top 5 Largest IPOs So Far”
The top five largest IPOs so far are:
- LIC (Life Insurance Corporation of India) – 21,000 crores.
- One97 Communication (Parent company of Paytm) – 18,300 crores.
- Coal India – 15,200 crores (IPO launched in 2010).
- Reliance Power – 11,700 crores.
- GIC (General Insurance Corporation of India) – 11,257 crores.
