Tata Group IPO Frenzy: 10 New Public Offerings on the Horizon

The Tata Group is making a significant comeback to the stock market. After two decades marked by a single IPO, the group is gearing up for a series of public issuances in the next two to three years.

This IPO frenzy comes hot on the heels of our February editorial highlighting five new Tata Group companies slated to list on the exchange after Tata Technologies' successful offering.

But the party doesn't stop there.

In just one month, the group plans to unleash a staggering 10 additional companies onto the stock exchanges.

This aggressive push aligns perfectly with the Tata Group's ambitions in new-age sectors like digital, retail, semiconductors, and electric vehicle batteries.

Here is a list of 10 Tata stocks that are set to make their debut soon.

#1 Tata AIG

First on the list is Tata AIG.

Tata AIG General Insurance Company is an Indian general insurance company and a joint venture between the Tata Group and American International Group (AIG).

Tata Group holds a 74% stake in the insurance venture, with AIG holding the balance of 26%.

Tata AIG General Insurance Company, which started its operations in India on 22 January 2001, provides insurance to individuals and corporations. It offers a range of general insurance products, including insurance for automobiles, home, personal and more.

The company on 19 March 2024, launched Travel Guard Plus, a comprehensive travel insurance product that redefines complete coverage for travellers with an array of bundle plans.

Amongst the many product enhancements, one significant transformation is the customisation of plans.

Apart from that, last year, the company launched Health Supercharge to offer a fivefold enhancement in health insurance coverage, addressing the dynamic nature of health-related uncertainties. This new plan caters to the varied healthcare requirements of families residing in Tier I to Tier IV locations.

With Tata Group currently prioritising public offerings for companies, the company might see a listing soon.

Going forward, the company plans to earn market share and remain competitive.

#2 Tata AIA

Second on the list is Tata AIA.

Tata AIA is amongst the fastest-growing life insurance companies in India.

Tata AIA Life Insurance is a joint venture company, formed by Tata Sons and AIA Group. Tata AIA Life Insurance combines Tata's preeminent leadership position in India and AIA's presence as the largest, independent listed pan-Asian life insurance group in the world, spanning 18 markets in the Asia Pacific region.

Tata AIA Life Insurance is also one of the leading insurers in the Indian private sector.

Tata AIA, on 18 March 2024, launched the Rising India Fund. This new fund offering (NFO) presents investors with an opportunity to participate in India's growth narrative while getting the benefits of a diversified portfolio.

This launch comes at a time when India's economy is poised for growth, with key sectors such as infrastructure, manufacturing, banking, digital, and defence driving the Atmanirbhar Bharat initiative.

The company is looking to launch more products going forward.

#3 Tata Capital

Third on the list is Tata Capital.

Tata Capital, the flagship financial services company of the Tata Group, is a subsidiary of Tata Sons Private Limited and is registered with the Reserve Bank of India as a systemically important non-deposit-accepting core investment company (CIC).

Tata Capital Financial provides term loans, cash credit, working capital demand loans, and overdraft facilities. Tata Cleantech Capital, a joint venture with IFC, provides finance and advisory services for projects in renewable energy, energy efficiency, waste management, and water management sectors.

Tata Capital is classified as NBFC - Upper Layer by the banking regulator, Reserve Bank of India.

As per the regulations released in September 2022 involving Layer non-banking financial companies, NBFCs classified as upper layer will be required to be listed by September 2025.

Tata Capital and its parent, Tata Sons, are among the 14 companies class.

It also recently merged two subsidiaries, Tata Capital Financial Services and Tata Cleantech Capital.

The financial services arm has now applied to the RBI to be converted into NBFC - ICC.

After the merger, it will have Tata Housing Finance and Tata Securities and private equity business entities as subsidiaries.

#4 Tata Housing

Fourth on the list is Tata Housing.

Tata Housing Development Company (THDC) is a wholly owned subsidiary of Tata Sons, a holding company of the Tata Group.

Since 2006, the company has developed into one of the leading real estate development companies and has built many landmark projects across India. Tata Housing pioneered the concept of low-cost housing aimed at the economically weaker section of society.

It pioneered the concept of sustainable green development with its first commercial project - Xylem in Bengaluru.

TATA Housing has recently exceeded expectations with the swift sell-out of Phase 1 in its flagship Project, Raagam, achieving revenue of Rs 6.5 billion (bn) within one week of its launch.

With 576 plots sold and a total area of 0.9 m square feet, the Project's overwhelming response reflects the robust demand for premium residential offerings in Bengaluru's real estate market.

Raagam is a visionary plotted development Project launched within the futuristic township of Tata Carnatica in Devanahalli, North Bengaluru.

Moving forward, TATA Housing's next phase of Project Raagam will expand its offerings beyond premium plotted developments. Envisioned as a diverse range of living options, including luxury condominiums, bespoke spacious apartments, signature row villas, and smart townhomes complete with private gardens.

#5 Tata Realty

Fifth on the list is Tata Realty.

Tata Realty and Infrastructure Limited (TRIL) is a 100% subsidiary of Tata Sons and serves as the real estate and infrastructure development arm of the group.

Tata Realty and Infrastructure (TRIL) is in the business of commercial real estate.

The company is looking to expand its business with over 50 projects across major cities in India, Sri Lanka, and the Maldives. The combined projects boast a development potential exceeding 51 million sq ft, according to market reports.

The Mumbai-based real estate major has completed the first phase of project developments in Male (the Maldives) and is gearing up for the second phase.

It has also expanded its footprint in Sri Lanka and plans to add about 2 million sq ft. in Colombo.

In India, Tata Realty has added 47- acres of development.

Going forward, Tata Realty and Infrastructure plans to launch 9 m of residential real estate inventory, aiming at a topline of Rs 110 bn in the next four years with a 70% focus on premium luxury projects followed by aspirational affordable and mid-segment.

#6 Tata Projects

Sixth on the list is Tata Projects.

Tata Projects is an Indian engineering, procurement and construction company. It is a subsidiary of Tata Sons.

Founded in 1979, the company carries out industrial and urban infrastructure projects.

Tata Projects, on 22 March 2024, picked up over 120,000 sq ft of office space in Mumbai's Powai suburb through a long-term lease to set up its headquarters that can accommodate around 1,000 employees.

The company has leased the space in the commercial tower Cignus Powai, a project of K Raheja Corp's hospitality business Chalet Hotels, for five years. The Tata Sons subsidiary will be paying rentals of nearly '860 m through the tenure of the lease.

Tata Projects aims to be a leader in sustainable infrastructure solutions. This includes decarbonization efforts, promoting a circular economy, and developing green energy projects.

It plans to leverage technology throughout the project lifecycle, utilizing tools like 3D modelling and advanced project management software for better planning, execution, and efficiency.

#7 Tata Cliq

Seventh on the list is Tata Cliq.

Tata Cliq is the flagship digital commerce initiative of the Tata Group, a renowned Indian conglomerate.

They primarily operate in the fashion and lifestyle domain, offering products across categories like fashion, beauty & wellness.

The company has also launched Tata Cliq Luxury, a dedicated platform that caters to those seeking premium fashion and lifestyle products from renowned international brands.

The company has recently partnered with Rediff for an exclusive collaboration, allowing Rediff users easy access to shopping on Tata Cliq starting 5 January 2024.

Further, Tata Cliq Luxury and American Express have inked an exclusive partnership aimed at a premium and aspiring clientele of luxury experiences.

Going forward, the company plans to venture into new product categories beyond fashion and lifestyle.

#8 Tata 1mg

Eight on the list is Tata 1mg.

Tata 1mg, previously known as 1mg, is a leading Indian healthcare platform based in Gurugram. It was founded in 2015 with the mission of making healthcare accessible, understandable, and affordable for all Indians.

Tata 1mg with Vitonnix, a UK-based healthcare product research and development company plans to introduce a range of new products and is expanding its presence in the rapidly growing Indian nutraceutical sector beyond the existing five offerings.

Tata 1mg, through this partnership, is looking to further penetrate the Indian nutraceutical space to solidify its presence in the rapidly expanding market. This space is poised to soar to a staggering US$ 18 billion (Rs 1500 bn) valuation by 2025, as per the Ministry of Food Processing.

Consistency in pricing and tight monitoring of the supply chain for authentic medicines helped Tata 1mg gain a large consumer base and subsequent market share in the last few months.

Going forward, it plans to expand its reach beyond the existing 1800+ cities, potentially targeting underserved areas and Tier-II and Tier-III cities with increased internet penetration.

#9 Croma

Ninth on the list is Croma.

Croma is an Indian retail chain of consumer electronics and durables run by Infiniti Retail, a subsidiary of Tata Digital, Croma offers over 16,000 products across 550+ brands through its stores spread in numerous major cities of India.

Presently, there are a total of more than 400 Croma stores across 130 cities in India.

Croma to do brand expansion foray into the world of sweets. The move seems, at first glance, like a leap into an entirely unrelated domain.

Croma has recently embarked on brand expansion into the confectionery industry with its new venture, Uphaar. This move, though seemingly divergent from its core business, reflects a calculated strategy to diversify revenue streams and capitalise on market opportunities. Uphaar will introduce a range of traditional Indian sweets like motichoor laddo, kaju katli, and soan papdi, targeting the festive season market.

Going forward, it plans to focus on expanding into Tier 2 and 3 cities.

#10 Tata Passenger Electric Mobility

Last on the list is Tata Passenger Electric Mobility.

Tata Motors inaugurated a new subsidiary, Tata Passenger Electric Mobility (TPEML), for the sole purpose of manufacturing EVs.

TPEML will hold 100% of the share capital in its EV unit, and the initial capital allocated was Rs 7 bn.

Over the next five years, Tata Motors has plans to invest US$ 2 bn in this EV business.

TPEML has a robust pipeline of "New Forever" products that can set momentum in the electric vehicles space.

Currently, TPEML has launched two electric models - Nexon EV and Tiago EV, that are conquering Indian roads.

But that's not all. TPEML already boasts a staggering 80% market share in the Indian EV market.

The IPO of Tata Passenger (TPEML)is expected to be a game-changer and could be valued between US $1-2 bn.

The IPO window is expected to open within the next 12-18 months.

TPEML has already sold 53,000+ electric cars in 2024 so far. This is a 69% YoY increase in EV sales, including exports.

As per recent reports, the company expects to sell 100,000 more in 2025.

In the next 3-4 years, the company plans to launch 10 new electric cars, further solidifying its position as a major EV player.

Conclusion

Tata Group has undergone a notable strategic shift from a focus on overseas growth through acquisitions to a more India-centric approach, marked by bold investments in businesses with significant scalability potential.

The conglomerate's commitment to emerging industries is exemplified by its ambitious investment plans, originally slated at US$ 90 billion (bn) by 2027 but now expected to surpass US$ 120 bn shortly.

While Tata Group companies have historically demonstrated resilience and innovation amidst India's growth trajectory, investors must recognize that they remain susceptible to macroeconomic conditions.

Therefore, prudent investment considerations necessitate treating Tata stocks like any other company, conducting thorough due diligence and assessment before making investment decisions.

Remember, a fundamentally strong company has the potential to give good returns in the long run. Hence, it is better to carry out proper due diligence before investing in any stocks, including Tata Group companies.

As you're interested in Tata group stocks, check out the new section in our Stock Screener, where you can view the fundamentals of companies within a business group in one screen, including the Top Tata group stocks.

For more information on IPOs, check out the list of upcoming IPO's.

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