For fans of Tata companies, 2023 is going to be an interesting year as at least two Tata group IPOs are lined up in the next year. From the information available in the public domain, Tata Technologies and Tata Play are the two companies from the house of Tatas that are likely to go public in next year. It is worth highlighting that the last IPO to come from Tata group was Tata Consultancy Services (TCS) which made its stock market debut in 2004.
Tata Play IPO – Confidential filing, Disney to exit
Of the two, Tata Play IPO is in a relatively advanced stage as draft papers have already been filed for the offer. Incidentally, it is also India’s first company to draft a prospectus confidentially. Market regulator SEBI recently allowed companies to file their IPO papers without making the content available for the general public, pretty much on the lines of the US market.
Earlier known as Tata Sky, Tata Play is India’s largest satellite television operator with over 19 million subscribers and counts Walt Disney Co. as a major investor. Nevertheless, the US entertainment giant is looking to offload its entire shareholding of 29.8% in Tata Play IPO, according to media reports. The equity stake was inherited by Walt Disney as a result of the acquisition of TFCF Corporation (formerly known as Twenty-First Century Fox) but it now plans to focus on growing its own operations.
Tata Technologies IPO – Board approval, stock split & bonus
Apart from Tata Play IPO, the other contender from the group is Tata Technologies which received in-principal approval from the board of Tata Motors earlier this month. The engineering and digital services subsidiary of Tata Motors has private equity investor Alpha TC Holdings Pte Ltd among its external investors.
Furthermore, Tata Technologies is going ahead with a stock split (1:5) and bonus (1:1) in-line with its preparation for its stock market debut. The record date for both activities has been fixed at 16 January 2023. According to the intelligence gathered by IPO Central, the stock is currently quoting at INR 6,500 per share in the unlisted market, following a jump in recent days.
During the year ended 31 March 2022, the engineering specialist was the driving force behind a sharp jump in its parent’s income from other sources. Its revenues jumped 48% to INR 3,530 crore in FY 2022, while net profit surged nearly 83% to INR 437 crore.
First Tata Group IPO since TCS
While it is not immediately clear which IPO will hit the market first, there is little doubt that the market has high hopes from both the offers. The group’s last offering, in the form of TCS IPO, has proved to be a consistent compounder and has rewarded investors very well.
This is a developing story; we will keep updating as more details about Tata Group IPOs are available. Keep reading IPO Central for latest IPO news and interesting updates.