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Why TATA Group Stocks Down & Reasons TATA Sons IPO Delay


Why TATA Group Stocks Down & Reasons TATA Sons IPO Delay


You might have heard about Tata, a big name in business and money matters. Well, lately, there's been a lot of talk about Tata Sons, one of the main companies in the Tata group, thinking about going public. 

Why Everyone's Talking: Predictions and Numbers

Imagine if Tata Sons decides to go public, it could be massive! Some experts say Tata Sons valuations could be worth 8 Lakh Crores when they go public. That's a lot of money! And they might plan to raise about 55,000 Crores through an Initial Public Offering, or IPO. This news got investors really excited. So excited that the stock of Tata Chemicals, which owns a big part of Tata Sons, shot up by 20% in just a couple of days. That's a big jump!


But Then Something Surprising Happened: A Sudden Request

Just when everyone was getting ready for Tata Sons' big move, there was a surprising twist. Tata Group, who owns Tata Sons, made a sudden request to the Reserve Bank of India, or RBI. They asked RBI to remove Tata Sons from NBFC’s upper layers list, which nobody expected. This request made the stock fall a bit. The stock of Tata Chemicals, which had gone up so much, suddenly dropped by over 10%. It was quite a shock! On the other hand Tata Investments made a lower circuit of 5%.

Trying to Understand: Why Did Tata Group Do That?

People were wondering why Tata Group would do something so unexpected. So, they started looking back at the rules set by the RBI. It turns out that back in 2022, the RBI had put Tata Sons on upper layer list of NBFCs as Core Investment Companies, or CICs. And according to the rules, any company on that list has to go public within three years. Ah, now it started making sense. Maybe Tata Group wanted to change their status to avoid going public too soon. But what made tata sons to rethink about this?



The Market Reacts: Confusion and Questions

With Tata Group's surprising move, the market started buzzing with confusion. Why would a big company like Tata hesitate to go public? Well, it seems there are some strict rules from SEBI, along with the RBI. These rules say that if a company goes public, they have to share a lot of private information. And these are done through a corporate filing which we call LODR, that is Legal Obligations and Disclosure Requirements. Tata might want to keep some things secret to protect their business. That's totally understandable.



Looking Forward: What's Next for Tata?

Now, everyone's wondering what Tata Sons will do next. The IPO, which seemed like a sure thing, is now uncertain. Tata is keeping their plans secret, and nobody knows for sure what's going to happen. But one thing's for sure – the world of money and business is always changing, and Tata is right in the middle of it all. As we have seen all the stocks and their returns in last few years.




The story of Tata's IPO is like a rollercoaster ride in the world of money. It's full of surprises and twists. For investors, it's important to keep an eye on what's happening and be careful with their decisions. Tata's journey isn't over yet, and there might be more surprises waiting around the corner. IPO may hit the markets or may not. This, time will tell.




Frequently Asked Questions


Tata Sons, a prominent company in the Tata group, is contemplating going public to raise funds and potentially unlock significant value for its stakeholders. Going public could also provide access to a broader base of investors and increase liquidity in the company's shares.


Experts speculate that Tata Sons' valuation could reach an impressive 8 Lakh Crores when it goes public. Additionally, it's anticipated that Tata Sons may aim to raise approximately 55,000 Crores through an Initial Public Offering (IPO), which could be one of the largest in recent times.


Tata Group's unexpected move to request the Reserve Bank of India (RBI) to remove Tata Sons from the NBFC's upper layers list stemmed from regulatory obligations. In 2022, the RBI classified Tata Sons as a Core Investment Company (CIC), requiring it to go public within three years. Tata Group's request could be a strategic decision to potentially delay or avoid going public due to undisclosed reasons.


Tata Group's request to reclassify Tata Sons has sparked confusion and speculation in the market. Investors are left questioning the motives behind Tata Group's actions and pondering the future of Tata Sons' IPO. This uncertainty may lead to fluctuations in Tata-related stocks and warrants caution among investors until further clarity emerges regarding Tata's plans.

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