Tata Sons' mega-IPO will not come, paid 20 thousand crores!!!
Tata Group's holding company Tata Sons has spent thousands of crores of rupees to avoid the compulsion of bringing an 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 a loan of Rs 20 thousand crore and has voluntarily submitted its certificate of registration to the RBI. This move of Tata Sons is being seen as a strategic effort to remain unlisted.
This is why the IPO was needed
Actually, the Reserve bank had recently made some changes in the regulations. The 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 an 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 the IPO of Tata Sons had come, then all the records of IPOs on the stock market till now would have been dwarfed in front of it. The value of Tata Sons, the holding company of the 410 billion dollar Tata Group, was estimated at Rs 11 lakh crore last year. 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 Rs 55 thousand crore.
Currently the record is registered in the name of LIC
Till now even an IPO of Rs 25 thousand crore has not come in the indian market. The record of the biggest 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 biggest IPO in the history of the indian market.
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