The primary investment arm of the Tata Group has been classified as an upper-layer non-banking financial company (NBFC), supporting and promoting other Tata Group businesses. It is currently preparing for its initial public offering (IPO). According to the Reserve Bank of India’s rules, when a company is designated as an upper-layer NBFC, it must go public within three years. On September 14th, 2023, the RBI announced that 15 financial firms, including Tata Sons, fall into this upper-layer NBFC category.
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According to projections, Tata Sons is set to enter the public market by September 2025, promising significant profits for its shareholders. With an estimated valuation of 11 lakh crore rupees, the company intends to go public and offer 5% of its shares as part of the IPO.
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Currently, with a value of 21,000 crore rupees, Life Insurance Company (LIC) is the largest IPO in India. According to calculations, the Tata Sons IPO, which is anticipated to exceed this sum given that it is twice as large as LIC’s IPO, will raise more money.
