Why is Tata Sons’ IPO not coming, does Tata Group not care about the rules?
Noel Tata has been unanimously appointed as the Chairman of Tata Trusts after the death of his cousin Ratan Tata. The Chairman of Tata Trusts is the one who truly guides the Tata Group. However, Noel Tata’s journey as the Chairman of Tata Trusts is not going to be easy. His biggest challenge is to bring the IPO of Tata Sons. This may be the most talked about IPO in the country, but it is not yet decided when the IPO of Tata Sons will come.
Why is Tata Sons’ IPO not coming
The first expectation from Noel Tata is that he will clear the way for bringing the initial public offering (IPO) of Tata Sons, the holding company of the Tata Group. Most of the shares of Tata Sons are held by Tata Trusts. The Reserve Bank of India (RBI) rule is that large non-banking financial companies (NBFCs) should be public. This means that their IPO should come and they should be listed in the stock market.
Listing deadline is September 2025
Under RBI rules, all non-banking finance companies will have to be listed in the stock market. Its deadline was fixed as September 2025. At that time, a list of about 15 companies was released, which were required to be listed in the stock market as per the rules. Tata Sons is also included in them. Tata Sons has sought relief from RBI in this matter.
Is it a matter of conflict of interest?
Actually, Venu Srinivasan is on the boards of both RBI and Tata Sons. Therefore, this whole matter is related to conflict of interest. Srinivasan was appointed to the board of directors of the central board of RBI on June 14, 2022 for a term of four years. He has also been the chairman of TVS Motors. He has a very high stature in the corporate world of India. In such a situation, experts believe that till this matter of conflict of interest is not resolved, the way for the IPO of Tata Sons will not open.
Is Noel Tata follows the rules?
Noel Tata is believed to respect the rules a lot. Actually, the identity of the entire Tata Group is its principles. In such a situation, it will not be a matter of pride for the Tata Group itself that any of its companies is not able to get listed in the share market by bringing an IPO as per the rules. This should have happened during Ratan Tata’s time, because RBI rules also apply to Tata Sons. And Ratan Tata also cared a lot about the rules.
What will happen on the listing of Tata Sons
The IPO of Tata Sons will be the most talked about IPO in the country. The biggest benefit from this will be of the Tata Group. It can raise more than Rs 55 thousand crore even by selling only 5 percent stake in Tata Sons. This will help in strengthening the financial position of the Tata Group. With this amount, the Tata Group will not have a shortage of capital to complete its future plans. This will truly help Noel Tata to show his ability as a chairman on a large scale.
