The issue of Tata Sons’ IPO is not far from the table. On Monday, at the company’s Annual General Meeting, i.e. the Annual General Meeting, its shareholder Shapur Ji Pallon once again demanded to conduct an initial public offering (IPO). Moreover, he also praised the Tata Sons chairman for growing the Tata Group.
According to sources, Shapoorji Pallonji (SP Group), which holds over 18 per cent stake in Tata Sons, praised the leadership of Tata Sons Chairman N Chandrasekaran. Tata Sons’ pre-tax profit rose to Rs 39,813 crore from Rs 30,024 crore.
What is the problem?
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SP Group also advocated for Tata Sons to go public to reap more financial benefits for the company. SP Group told the AGM that the listing will give Tata Sons access to sufficient capital to pursue its vision of raising $90 billion in investments over the next five years, a source close to both companies said. Tata Sons was classified as a top-tier NBFC in September 2022 under the Scale-Based Regulatory Framework (SBRF). On this basis, it is required to go public by September 2025. However, Tata Sons has made efforts to avoid listing. This also includes its request to the RBI for voluntary surrender of registration certificate.
Why does this problem arise?
According to sources, the SP Group has lodged its protest against any attempt by the board to avoid regulatory listing. It stressed that the listing will unlock value and liquidity for all shareholders, including trusts, while benefiting the millions of shareholders who have patiently invested in the company. According to a Kotak Securities report earlier this year, Tata Sons can raise Rs 55,000 crore through an IPO. Market experts also believe that Tata Sons’ IPO can strengthen its financial position. It can increase shareholder engagement and promote further growth of the company.
