Upcoming Tata Group IPOs In 2024: Profit From These Four IPOs

Republished By Plato

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In 2023, Tata Technologies IPO marked the first public offering from the Tata Group in 19 years which was a resounding success with a bumper listing on the stock exchange. Following this grand success, the group is planning to list four more companies in 2024. These Tata Group IPOs in 2024 are from different industries. Let’s take a closer look at which companies these are:

#1 Tata Capital: Foremost of the Upcoming Tata Group IPOs in 2024

Tata Capital, a subsidiary of Tata Sons Limited, was established in 2007. The company is registered with the Reserve Bank of India as a systemically important deposit accepting non-banking financial company.

It offers services like commercial finance, consumer loan, treasury advisory, private equity, investment banking, and credit cards.

Tata Capital has been profitable since its inception and currently has a loan book of INR 1,20,940 crore, with secured loans accounting for 76%. It has wide presence across India serving over 3.3 million customers through its 438 branches. During FY 2023, the company posted its highest ever profits of INR 2,975 crore, marking a sharp growth of 80% Y-o-Y.

As of now, there is no official valuation for the upcoming Tata Group IPO, but it is aiming for a valuation similar to Jio Financial Services, the financial arm of Mukesh Ambani’s Reliance Jio, which was around INR 10,000 crore in 2023.

#2 Tata Play IPO: Delayed But in Works

Tata Play, formerly known as Tata Sky, is a joint venture between Tata Sons and TFCF Corporation (formerly Twenty-First Century Fox, Inc., and now a part of the Walt Disney Company).

Tata Play IPO - Among Promising Tata Group IPOs in 2024

Tata Play was incorporated in 2001 and initiated services in 2006. It is one of India’s leading content distribution platforms providing Pay TV and OTT services. As of March 2023, according to Telecom Regulatory Authority of India, Tata Play serves 21.3 million subscribers which is 32.65% of total DTH users in India.

In FY 2023, Tata Play reported a net loss of INR 105 crore as compared to a net profit of INR 68.6 crore in FY 2022. The company swung to a loss as a result of a 5.1% decline in revenue from operations to INR 4,499 crore in FY 2023.

Tata Play IPO is aiming to mobilize around INR 2,000-2,500 crore by way of a sale of shares by existing investors including Singapore’s Temasek Holdings, Tata Opportunities Fund, and Walt Disney. These investors collectively hold 37.8% equity stake in Tata Play.

The company received approval from the SEBI board in May 2023 and was planning to launch the IPO last year. However, the public offer got delayed and the management is now targeting a stock market listing this year. The IPO dates are yet to be announced.

#3 Tata Autocomp Systems: Another Tata Group IPO From Automotive Industry

Tata Autocomp Systems (TACO) – an auto ancillary player – was incorporated in 1995 and is fully-owned by Tata Group entities with direct holding by Tata Sons. Tata Sons owns around 21% of TACO, while the remaining is held by Tata Industries.

The company has 51 manufacturing facilities spread across India, North America, Latin America, Europe, and China. It is primarily involved in the design, development, manufacturing, and supply of auto component products and services to both passenger and commercial vehicle manufacturers under the brand name “AUTOCOMP”.

In 2023, Tata Autocomp Systems’ revenue shot up by 56.5% to INR 11,170 crore from INR 7,133 crore in 2022. Similarly, profits rose from INR 466.3 crore in 2022 to INR 783 crore in 2023.

This is the company’s latest attempt to tap primary markets after a failed attempt several years back in 2011 when TACO IPO had to be withdrawn in light of unfavourable market conditions. Nevertheless, market conditions are favorable this time and the company’s strong financial performance, coupled with Tata’s brand name, is likely to pull investors to TACO IPO.

#4 Tata Advanced Systems IPO: An Aviation Player in Fray

Another interesting Tata Group IPO planned this year is Tata Advanced Systems (TASL). Incorporated in 2007, Tata Advanced Systems (TASL) is a wholly-owned subsidiary of Tata Sons, which focuses on aerospace and defence manufacturing, including military vehicles, radars, missiles, and unmanned aerial vehicles. Initially, Tata Motors owned TASL as part of its defence business, but later divested the defence business, and TASL is now directly owned by Tata Sons.

Tata Advanced Systems has a strong portfolio of partnerships and joint ventures with leading global aerospace and defence firms, making it an integral partner in the international supply chain and in some instances, a global single source provider for leading defence OEMs.

Teaming up with giants like Airbus, TASL strengthens India’s defence muscle by building new weapons and expanding the supply chain. They’re even partnering with space tech leader Satellogic to build India’s own homegrown space tech.

In the financial year 2023, Tata Advanced Systems generated a revenue of INR 3,527 crore which is 15.7% up from the previous year and the profits increased from INR 25.46 crore to INR 34.73 crore in 2023. Given the strong investor interest in defence and space technology companies in the recent past, Tata Advanced Systems IPO will be surely closely watched.

India’s red hot IPO market saw as many as 60 mainboard listings in 2023, with average returns of 28.16% on the first day of public trading. In fact, Tata Technologies topped the list of best IPOs in 2023 with first-day returns of 162.6%. Given this backdrop, it is not wrong on the investors’ part to eagerly anticipate these upcoming Tata IPOs.