Tata Sons Poised for India’s Biggest IPO as RBI Mandates Public Listing by 2025
Tata Sons Poised for India’s Biggest IPO as RBI Mandates Public Listing by 2025
Tata Sons could soon be part of India’s largest-ever Initial Public Offering (IPO) after the Reserve Bank of India (RBI) classified it as an Upper Layer Non-Banking Financial Company (NBFC-UL). This classification means Tata Sons must list on the stock exchange by September 2025, unless it receives special exemptions.
Tata Sons IPO and RBI Classification
On January 16, the RBI released an updated list of NBFC-UL entities, which includes Tata Sons along with 15 other major companies such as Tata Capital, LIC Housing Finance, Bajaj Finance, and Aditya Birla Finance. Companies classified as NBFC-UL must follow stricter rules and must list on stock exchanges within three years. Tata Sons, however, is trying to avoid this by applying to the RBI to de-register as an NBFC. If the application is approved, Tata Sons would not be required to list. However, the RBI has stated that the NBFC-UL classification will remain until the company completes at least five years under this category, even if it later leaves.
India’s Biggest IPO Coming Soon
If Tata Sons does go ahead with the listing, it could become the largest IPO in India’s history, raising more than ₹50,000 crore by selling at least 5% of its shares. The Tata Sons group, which owns major stakes in companies like Tata Consultancy Services (TCS), is seen as a highly valuable investment opportunity. In 2024, Tata Sons reduced its debt by selling TCS shares, aligning itself with regulatory rules.
Tata Group’s Legacy and Leadership Change
These developments come after the death of Ratan Tata, the iconic former chairman, on October 9, 2024. His half-brother, Noel Tata, has taken over as Chairman of Tata Trusts, which holds a 66% stake in Tata Sons. This leadership change adds even more importance to strategic decision-making for the group.
Tata Group’s Global Presence
Founded in 1868 by Jamsetji Tata, the Tata Group is now a global giant, operating in over 100 countries. With a market value of $403 billion (around ₹33.7 trillion), it spans sectors such as steel, automobiles, IT services, and consumer goods.
As the Tata Group faces this crucial moment, the decision on whether Tata Sons will list on the stock exchange could have a significant impact on India’s financial and corporate world. All eyes are on the RBI’s decision about Tata Sons’ de-registration application and what the group will do next.
