Shares of some Tata Group companies, especially Tata Chemicals, gained on Monday as speculation over the listing of Tata Sons drove hopes of value unlocking for investors.
Tata Chemicals, which holds a 3% stake in Tata Sons, was one of the biggest gainers as it rose over 9%. It could be the biggest beneficiary of the value-unlocking exercise if there is an IPO.
Earlier estimates by brokerage firm Spark Capital showed that Tata Chemicals’ 3% stake in Tata Sons was worth around Rs 19,850 crore or 80% of the market value of the company.
Shares of Tata Investment Corp also rose more than 3%.
A report by MoneyLife on Friday, based on an RTI reply by the Reserve Bank of India (RBI), said that Tata Sons never sought any exemption from the mandatory listing requirement.
Also ReadFPIs continue to be net sellers in government debt
In September 2022, RBI had classified 15 non-bank financial companies (NBFCs), including Tata Sons, as upper layer NBFC. The apex bank had mandated these NBFCs to list on the stock exchanges by September 2025. However, Tata Sons has been trying to avoid getting listed, said earlier reports.
The Tata Group has a complex ownership structure with the group companies holding some stake in Tata Sons. Tata Chemicals, Tata Steel, Tata Motors, Indian Hotels Company, and Tata Power Company hold around 1-3.1% stake each in Tata Sons.
Tata Chemicals’ stake in Tata Sons would be valued at Rs 24,500 crore, as per reports. This is 88% of the market capitalisation of Tata Chemicals itself, analysts said. As a result, the listing of Tata Sons would lead to a huge value-unlocking proposition for the shareholders of Tata Chemicals.
Also ReadIndia-focused funds see inflows slow in October
Overall, the performance of Tata Group shares was mixed on Monday. While Tata Elxsi, Oriental Hotels and Tejas Networks rose in the range of 1-11%, shares of Trent, Tata Teleservices, Voltas and Tata Consumer Products fell 2-7%.
» Read More
