Why Tata Sons Is Trying Everything To Avoid An IPO

Tata Sons has been compelled to go public, which is an empire valued around 15 lakh crore rupees. And in an attempt to avoid this, it has already repaid over 21,000 crores in debt.

Tata Sons sits at the very top of the Tata group and what makes it even more special is who owns it. Two-thirds of it belongs to Tata Trusts which is the charitable trust. This means a significant portion of Tata’s profits supports schools, scholarships and hospitals.

This ownership structure for a business of such enormous scale is unusual. It brings commercial success and philanthropy together under one umbrella. And that is precisely why any variation in ownership becomes such a sensitive issue.

Given the circumstances, the Reserve Bank of India (RBI) stepped in. Owing to its sheer size, Tata Sons was classified as a large financial company. Under RBI regulations, companies falling under this category are required to list on the stock market, which means going public and allowing outside investors to