Tata Group's Upcoming IPOs

Overview of Tata Upcoming IPOs

Tata Capital IPO:

In 2007, Tata Capital was founded as a division of Tata Sons Limited. The company is listed as a non-banking financial institution that accepts deposits & is systemically important with the Reserve Bank of India.
The principal financial services provider for Tata Group, Tata Capital Limited ("TCL"), is a division of Tata Sons Private Limited & is designated by the Reserve Bank of India as Systemically Important Non-Deposit Accepting Core Investment Company ("CIC").

Since its founding, Tata Capital has turned a profit, & as of right now, its loan book stands at INR 1,20,940 crore, of which 76% are secured loans. With 438 outlets, it serves over 3.3 million clients throughout its extensive footprint in India.
The company reported INR 2,975 crore in profits for FY 2023, a significant 80% year-over-year gain. This was its greatest profit ever.

The impending Tata Group IPO is expected to be valued at approximately INR 10,000 crore in 2023, which is comparable to Jio Financial Services, financial division of Reliance Jio, which is owned by Mukesh Ambani. However, official valuation has not yet been disclosed.

Tata Autocomp Systems IPO: 

Tata Autocomp Systems (TACO), with start of official procedure anticipated for later in year. Tata Group companies own all of TACO, with Tata Sons holding direct stake of about 21% & Tata Industries Ltd. holding rest portion. TACO was established in 1995 & serves as group's vehicle for business endeavors involving automotive components.
The corporation operates 51 production sites in China, Europe, Latin America, North America, & India. Under brand name "AUTOCOMP," it is mainly engaged in the design, development, manufacturing, & delivery of auto component goods & services to manufacturers of both passenger & commercial vehicles.

Revenue for Tata Autocomp Systems increased from INR 7,133 crore in 2022 to INR 11,170 crore in 2023, 56.5% increase. In similar vein, earnings increased from INR 466.3 crore to INR 783 crore in 2023. In future, company intends to investigate joint ventures with producers of batteries & suppliers of infrastructure for charging.

BigBasket IPO: 

Bigbasket's Chief Financial Officer, Vipul Parekh, stated in December 2022 that firm, which is owned by Tata Group, plans to initiate initial public offering within span of 24 to 36 months. This suggests that IPO of Bigbasket may occur in latter part of 2024 or early 2025.

The company's platform offers simple, stress-free method to browse & purchase for food.
The business intends to increase number of dark stores that enable BB Now, rapid commerce model that guarantees 30-minute delivery of necessary household supplies.

Big Basket's scheduled grocery delivery business is now profitable, with objective of becoming profitable in six to nine months. Meanwhile, company's daily operation, BB Daily, is very close to becoming profitable.

Tata Passenger Electric Mobility IPO:

"If business climate for EVs remains robust and the overall market sentiments is positive," the Tata group plans to float the EV unit through an initial public offering (IPO) for $1–2 billion within the next 12–18 months, or by FY25 at the latest.
The Tata Group is also thinking about listing Tata Passenger Electric Mobility Ltd (TPEM), the firm that makes EVs, in an attempt to capitalize on its investments in the EV sector.

A Unit Transfer Agreement was signed on August 7, 2022, by Ford India Private Limited (FIPL) and Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Limited (TML), for the purchase of FIPL's Sanand, Gujarat, manufacturing plant. Among other things, the agreement covered the following.

For a total consideration, exclusive of taxes, of Rs 725.7 Cr (Seven Hundred Twenty-Five Crores and Seventy Lakhs) ("Transaction").

(i) the entire land and buildings (referred to as "Sanand Property");

(ii) the Vehicle Manufacturing Plant and Machinery located therein (referred to as "VM Plant and Machinery"); 

(iii) the transfer of all eligible employees of FIPL's vehicle manufacturing operations at Sanand (referred to as "Eligible VM Employees").

Tata Advanced Systems IPO:

Tata Advanced Systems (TASL) is an intriguing IPO that the Tata Group has scheduled for this year. Established in 2007, Tata Advanced Systems (TASL) is a fully-owned subsidiary of Tata Sons, specializing in the production of military vehicles, radars, missiles, and unmanned aerial vehicles, among other aerospace and defense-related products. After Tata Motors sold off its defense division, Tata Sons now owns TASL outright. Originally, TASL was a part of the company's defense division.

Tata Advanced Systems is a vital component of the global supply chain and, in certain cases, a global single source supplier for top defense OEMs because to its extensive portfolio of alliances and joint ventures with top aerospace and defense companies worldwide. 

Tata Play IPO:

After being incorporated in 2001, Tata Play started offering services in 2006. It is one of the top platforms for content distribution in India, offering OTT and Pay TV services. According to the Telecom Regulatory Authority of India, Tata Play served 21.3 million subscribers as of March 2023, accounting for 32.65% of all DTH consumers in the country.
The company was preparing to launch the IPO last year when it gained approval from the SEBI board in May 2023. But the public offering was postponed, and now the management plans to list on a stock market this year. The dates of the IPO are not yet known.

This year, Tata Play (previously known as Tata Sky) is also scheduled to go public through an IPO. SEBI has already given it the all-clear to move forward with the IPO. Though the exact date and specifics of the IPO are yet unknown, this year is anticipated to see it materialize.

Compared to a net profit of INR 68.6 crore in FY 2022, Tata Play recorded a net loss of INR 105 crore in FY 2023. The company's revenue from operations fell 5.1% to INR 4,499 crore in FY 2023, resulting in a loss.

Tata Sons IPO:

The Tata Group's investment holding business is called Tata Sons.
The primary company of the Tata Group, Tata Sons, is set to go through yet another mammoth IPO. As a result of Tata Sons' designation by the RBI last year as a “upper-layer” NBFC (Non-Banking Financial Company), the business is required to pursue a public listing by September 2025, at the latest. Tata Sons' initial public offering (IPO) is expected to be one of the biggest in India, if not the biggest. In seven commercial sectors—communications and information technology (IT), engineering, materials, services, energy, consumer products, and chemicals—the Tata Group consists of more than 100 active enterprises.

As an upper-layer non-banking financial corporation (NBFC), it assists and advocates for the operations of other Tata Group companies.