Tata Group has new IPOs coming up in the market

The Tata Group has two new IPOs coming up in the market in 2023.

Tata Group IPO

For the loyalists of the Tata Group, 2023 could be an engrossing year as the company plans to launch at least two Initial Public Offerings (IPOs) this year - Tata Play IPO and Tata Technologies IPO. As of the 31st of December 2021, Tata Group has 29 independent enterprises listed on the stock exchanges with a combined market capitalisation of around Rs 23.4 trillion.

As the news of these two IPOs coming up grips the market, speculations are that the company could be silently preparing for another IPO. As Tata Group’s chairman, Mr Natarajan Chandrasekaran, confirms the company’s plans to venture into the semiconductor business, the launch of the Tata Electronics IPO could be in line.

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Tata Electronics oversees the greenfield projects of the Tata Group

Tata Electronics oversees the greenfield projects under the Tata Group. It also handles the manufacturing of precision components at Tata Group’s manufacturing facilities. Let’s dive into the details of the two terms mentioned above:

Greenfield projects: The term greenfield project is used in the real estate industry. It refers to projects which include the construction of new buildings on unused land. In other words, the term refers to projects that involve the construction of buildings right from scratch.

Precision components: Precision components refer to the highly precise machinery parts that are used for industrial purposes. The Tata Group has planned to set up its manufacturing facility in the Krishnagiri district in Tamil Nadu for the manufacturing of precision components under its wholly-owned subsidiary Tata Electronics. The company has already invested Rs 50 billion to acquire a 500-acre of land from the Tamil Nadu Industrial Development Corporation (TIDCO).[2]

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How could the Tata Electronics IPO prove to be a gamechanger?

At first, the launch of the Tata Group’s IPOs seemed like a rumour. However, as it turned out, the company has already made its intentions clear to launch at least two IPOs this year - Tata Play IPO and Tata Technologies IPO. But now, after the Tata Group’s Chairman has revealed the company’s plans to enter into the semiconductor business, speculations are that the Tata Electronics IPO could also be on the line.

Experts believe that the semiconductor business could be the one that can rule the future. All Electric Vehicle (EV) charging stations require semiconductor chips to function. Keeping in mind the global shortage of semiconductors, Tata Electronics could be in to make huge profits. It is also believed that the company can soon start manufacturing iPhones in India.

Impact of Tata Electronics IPO launch on the market

Whenever the Tata Electronics IPO is launched, it is expected to create a stir in the Indian stock markets. In fact, there is already a buzz around investors after the news of the two Tata Group’s IPOs coming up has come out to the public. The company's growth seems imminent, be it the manufacturing of iPhones in India or the lucrative semiconductor business.

Sources:

  • https://ipocentral.in
  • https://www.businesstoday.in
  • https://www.equitymaster.com
  • https://www.tata.com
  • https://www.equitymaster.com

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