Tata Group's Upcoming IPOs: BigBasket, Tata Capital, and More - Stay Tuned!

In November 2023, the Tata Group re-entered the IPO market after a 19-year hiatus with the public issue of Tata Technologies Ltd. The group's previous IPO was Tata Consultancy Services (TCS) in 2004.

Reports suggest that the Tata Group is gearing up for a series of IPOs over the next 2 to 3 years, potentially bringing eight of its companies to the public market. The conglomerate, which spans industries from salt to software, is preparing companies IPO:

• Tata Capital
• Tata Autocomp Systems
• BigBasket
• Tata Digital
• Tata Passenger Electric Mobility
• Tata Electronics
• Tata Housing
• Tata Batteries

This move aligns with Tata Group's strategic expansion into sectors like digital, retail, semiconductors, and electric vehicles (EV).

Tata Sons, the holding company for the Tata Group, is reportedly planning to offer exit opportunities to current investors through these IPOs. A Tata Group executive noted that many of their businesses, established 20 to 25 years ago, are now ripe for growth and monetization. 

Decisions on these IPOs are being carefully made by individual companies in consultation with Tata Sons, focusing on either providing exits for investors or unlocking value without a fixed timeline.

The Tata Group is shifting its focus toward India-centric growth, making substantial investments in high-potential businesses. In 2022, the group announced a plan to invest $90 billion in emerging industries by 2027, covering mobile components, semiconductors, electric vehicles, batteries, renewable energy, and e-commerce. 

However, reports indicate that the Tata Group now aims to exceed this target, planning to invest over $120 billion in the coming years.

Tata Motors is contemplating a split of its passenger and commercial vehicle businesses into two separate listed entities to better capitalize on its electric vehicles and Jaguar Land Rover luxury unit. The commercial vehicle segment, including trucks and buses, will be housed in one entity, while the passenger cars, electric vehicles, and Jaguar Land Rover will be part of the second entity.

The anticipated IPOs of Tata Group companies include a significant one from Tata Sons, expected by September 2025. In response to new Reserve Bank of India regulations for non-banking finance companies, Tata Sons, with an estimated valuation of ₹11 lakh crore, is considering divesting approximately 5% through the IPO, potentially raising around ₹55,000 crore. This would be the largest IPO since LIC's ₹21,000 crore offering.

According to the Reserve Bank of India's regulations, both Tata Sons and Tata Capital are classified as upper-layer Non-Banking Financial Companies (NBFCs) and must list their shares by September 2025. Tata Sons holds approximately 95% equity in Tata Capital. 

If the process proceeds smoothly, the IPO could be launched by the end of this year. Additionally, the Tata Group is contemplating transferring some of its non-core assets to Tata Capital.