Introduction
If you've got an eye for financial news, you've probably heard the buzz about Tata Sons' upcoming IPO. It's not just any IPO; it's set to be a game-changer, marking a historic moment in India's financial landscape. But hold on to your seats, because we're about to unravel the story and discover a clever alternative investment strategy.
Tata Sons' IPO Buzz
Imagine the biggest group of companies in India, and chances are, you're thinking about the Tata Group. Well, guess what? They're gearing up for an Initial Public Offering (IPO), and it's projected to be colossal, ranging from a whopping 7 to 8 lakh crores! That's right – this IPO is expected to be the largest in India's history, outshining even the mighty LIC's 21,000 crores IPO.
Why the IPO, you ask? Well, it turns out the Reserve Bank of India (RBI) released a list of upper-layer Non-Banking Financial Companies (NBFCs) back in September 2022. According to RBI regulations, these companies have three years to go public, and Tata Sons is ticking down that clock, with about 1.5 years left. The question now is, how can you get in on this action before the IPO hits the market?
Here is the 4 Tata Stocks that will Benefited from Tata Sons IPO:
Out of the 28 shareholders within the Tata Group, five are publicly listed. Among these listed shareholders, the majority stake is held by Tata Steel and Tata Motors, followed by Tata Chemicals and Tata Power. Indian Hotels is considered as a subsidiary and thus has not been taken into this analysis.
So, there are four remaining shares which will get benefitted from the upcoming mega IPO.
But in all of these, one best alternative has been pointed out for viewers.
Meet Tata Chemicals – Your Smart Investment Alternative:
While we can't directly invest in Tata Sons just yet, there's a smart alternative – Tata Chemicals. Before your eyes glaze over at the mention of chemicals, hold on! This is where things get interesting.
Analyzing Tata Sons' major shareholdings in listed companies, Tata Chemicals steals the spotlight with a whopping 60% holding value. Compared to other companies with a mere 10-12%, Tata Chemicals stands out like a diamond in the rough.
But here's the catch – you can't just dive into investing without understanding the company's ins and outs. We're talking about future growth, profit trends, and various other critical factors. So, in the upcoming video, we'll break it down for you, exploring both technical and fundamental aspects, helping you make informed investment decisions.
Taking a Closer Look at Tata Chemicals
Alright, let's demystify the jargon. Tata Chemicals is more than just chemicals; it's been in the game since 1939, manufacturing and exporting basic chemistry and specialty products globally. However, there's a twist in the tale – 60% of their business relies on soda ash, and global demand has been a bit shaky lately, affecting prices and presenting challenges for Tata Chemicals.
In terms of numbers, Tata Chemicals seems undervalued, with a PE ratio of 19.5x compared to the industry's 33.3x. But, and it's a big but, the PEG ratio is in the negative, indicating potential challenges in the company's future profit growth.
Conclusion
In a nutshell, Tata Chemicals seems like a smart alternative for those eyeing Tata Sons' IPO action. The upcoming video promises to unravel more details, so don't forget to hit that like button and share the insights with your fellow investors. Stay tuned as we navigate through charts, business insights, and make investing a breeze.
FAQs
Dorabji Tata Trust (28%) and Ratan Tata Trust (24%) own the majority of Tata Sons. As the buzz over the potential listing of Tata Sons, the holding company of the Rs 30 lakh crore conglomerate, grows louder, investors have already started betting on Tata Chemicals which could be the biggest beneficiary of the mega IPO.
Who is the beneficiary of Tata Sons IPO? ›
As Tata Sons is anticipated to have its preparation for its IPO, investors are eyeing Tata Chemicals as a direct beneficiary due to its 3% stake in Tata Sons. Apart from Tata Sons, the NBFC list by RBI also includes its indirect subsidiary, Tata Capital Financial Services.
Which Tata company is bringing IPO? ›
The Tata Group launched an initial public offer (IPO) after a gap of 19 years with the public issue of Tata Technologies Ltd in November 2023.
Which company is Tata going to acquire? ›
Tata Consumer Products to acquire Capital Foods, owner of 'Ching's Secret' and 'Smith & Jones' brands. Tata Consumer Products today announced that it has signed definitive agreements to acquire 100% equity shares of Capital Foods, owner of the brands 'Ching's Secret' and 'Smith & Jones', in a phased manner.
Who are the top shareholders of Tata Sons? ›
As per the shareholding pattern of Tata Sons, which is mostly owned by Dorabji Tata Trust (28%) and the Ratan Tata Trust (24%), Tata Motors and Tata Chemicals own 3% each in the holding company, while Tata Power and Indian Hotels hold 2% and 1%, respectively.
Who is the next Tata heir? ›
Ratan Tata's Niece, Maya Tata: The Youngest Successor And Heiress Of Multi-Million-Dollar Tata Group. Ratan Tata appointed three Tata siblings to the Trust's Board. One of them is the youngest heiress of the family, Maya Tata.
What is the value of Tata Sons IPO? ›
The income of Tata Sons is mainly from TCS, which made a profit of Rs 39,106 crore in FY23. The estimated value of the Tata Sons is around Rs 11 lakh crore. The group may sell around a 5% stake in the IPO, which makes the IPO size Rs 55,000. It would make it the largest IPO in the Indian IPO industry.
Which company holds all Tata shares? ›
Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture.
Which is Tata Penny Stocks? ›
Tata Teleservices is a penny stock trading below Rs 100 levels. Although, Tata Teleservices' share price has touched a 52-week high and low of Rs 109.10 apiece and Rs 59.80 apiece earlier. YTD, the company's stock is down by 8.6%.
Which is the most profitable Tata company? ›
Despite this, TCS remains the most profitable firm in the Tata group in terms of annual profit, with a consolidated adjusted net profit of Rs 46,625 crore in 2023-24. This is significantly higher than Tata Motors' adjusted net profit of Rs 32,078 crore last financial year.
1. Tata Autocomp Systems. Tata Autocomp Systems (TACO), with the formal process expected to begin later this year. TACO is owned fully by Tata Group entities with direct holding by Tata Sons, which owns around 21% while the remaining is held by Tata Industries Ltd.
Which IPO is upcoming? ›
Different types of upcoming IPOs will be listed in 2024-25. Some of them are as follows: Indegene Ltd IPO, Aadhar housing Finance IPO, TBO Tek IPO, Ola IPO, Snapdeal IPO, Fabindia Limited IPO, MobiKwik IPO, Ixigo IPO, Go Airlines IPO etc.
What is the price of Tata IPO allotment? ›
The share allotment date is 28th November, and the IPO will be listed on 30th November on the stock exchanges. The price band is ₹475 to ₹500 per share and the lot size is 30 shares.
Which is the most profitable share of Tata? ›
With profit after tax (PAT) of Rs 46,099 crore, Tata Consultancy Services is the most profitable company of the Tata Group in FY24. It is followed by Tata Motors, which has recorded a PAT of Rs 31,107 crore and Titan Company with Rs 3,495 crore profit.
Could Tata Sons be valued at $96 billion in an IPO analyst says? ›
Tata Sons could be valued at as much as 8 trillion rupees ($96 billion) in a potential initial public offering within 18 months, Bloomberg reported on March 5 citing research from Mumbai-based Spark PWM.
