Tata Tech IPO may set stage for more listings from group

livemint.com:

Tata Consultancy Services Ltd went public in 2004. A successful IPO of Tata Technologies may encourage the conglomerate to take more group companies public, two investment bankers said on the condition of anonymity. Both Tata Sons and Tata Capital were classified by the Reserve Bank of India (RBI) in September 2022 as “upper-layer" NBFCs, which requires them to go public three years from the date of classification.

Tata Capital managing director Rajiv Sabharwal said the company will comply with the RBI categorization, a Mint report said in September. The company is considering a 2025 IPO, the report said. In November 2022, multiple news reports said Tata Play had made a confidential filing for an IPO, though the company has now abandoned it after firming up plans to buy back investor Temasek’s stake in the entity.

Tata Projects is seen as another future listing candidate and may reverse-list through a listed Tata Group entity, a senior executive previously said. On Thursday, Tata Technologies MD and CEO Warren Harris hinted at the Tata group’s return to the public markets after two decades. “I feel the weight of responsibility, not just for Tata Technologies, but also for the group.

The group has positioned its reputation and has been supportive of our decision to list. We’ve got some very big shoes to fill, given what TCS has been able to do in the last 19 years. And we were fully cognizant of what that means," Harris said, while declining to comment on other group companies.

“I have no doubt that if we can be successful, it will be the catalyst for other group companies to explore the value that can be achieved by this. But I’m responsible for Tata Technologies. I’m not responsible for the other companies that may be