Business News Desk, Bajaj Housing Finance’s IPO is opening next week on September 9. Its closing will be on September 11 and the shares can be listed in the stock market on September 16. After the launch of this IPO, at least 3 more upper layer non-banking financial companies (NBFCs) are expected to be listed within a year. These NBFCs will have to bring IPO to fulfill the mandatory listing condition of RBI. According to the rules, it is necessary for upper layer NBFCs to be listed in the stock market within 3 years of being notified in this category. According to news agency PTI, investment bankers say that Tata Capital Financial Services, HDB Financial Services (NBFC arm of HDFC Bank) and Aditya Birla Finance are the three NBFCs that can bring IPO. Sachin Mehta, Director, Investment Banking, Anand Rathi Advisors, says, given the demand for good quality businesses in the capital markets and based on valuations, we will definitely see many NBFCs getting listed.
According to the deadline, Tata Sons, Tata Capital Financial Services, Piramal Capital and Housing Finance, HDB Financial Services and Aditya Birla Finance are required to list within a year. RBI released the list of 16 upper layer NBFCs in September 2022. Mehta said that of these, Piramal Capital and Housing Finance will be merged with Piramal Enterprises and Tata Sons may consider all options to avoid listing.
Listing of Tata Sons can prove to be a game changer
However, analysts believe that the IPO of Tata Sons could prove to be a game changer for the market, with investors expected to benefit significantly. Given the reputation of Tata Sons as the holding company of Tata Group, one of India’s largest groups, its listing may see interest from both domestic and global investors. According to Dharmesh Mehta, CEO of DAM Capital, “If Tata Sons is listed, it will be a big deal for India’s rapidly growing equity capital markets. Given such an offering from one of the most prestigious groups in India, there will definitely be great interest in it globally and domestically.”
Tata Sons IPO can unlock good value
Market experts predict that Tata Sons’ IPO can unlock good value for shareholders. Analysts believe that even a 5 percent stake can bring an investment of more than Rs 55,000 crore in the market, which can increase liquidity and trading volume. Despite these optimistic estimates, it is being said that Tata Sons has applied to RBI to voluntarily surrender its registration certificate to avoid the condition of mandatory listing. Now all eyes are on RBI’s stand on Tata Sons’ application.
