Tata Sons likely to raise Rs 55,000 crore through IPO

The Tata group is considering selling a 5 per cent stake in Tata Sons, its holding company, through an initial public offering (IPO) to raise about Rs 55,000 crore at an estimated valuation of Rs 11 trillion, said a Kotak Securities report on Thursday. Tata Sons is classified as an ‘upper-layer’ non-banking financial company by the Reserve Bank of India. It has to be listed on the stock exchanges by September 2025 to meet the regulator’s norms, said Kotak Securities. The last big IPO was the state-owned Life Insurance Corporation of India’s public issue of Rs 21,000 crore in May 2022, it said. An email sent to Tata Sons on Thursday did not get a response. Kotak Securities said four other Tata group companies are likely to hit the IPO market to raise funds. These are battery storage firm Tata AutoComp, online grocer BigBasket, aerospace firm Tata Advanced Systems, and satellite TV distribution firm Tata Play. BigBasket’s IPO may come by early 2025 as the company is about to become profitable. Tata Play, in which Tata Sons has a 41.5 per cent stake, has filed a confidential draft red herring prospectus with the Securities and Exchange Board of India.