New Delhi: Many shares of Tata Group saw a rise on Thursday due to the talk of Tata Sons IPO. Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services, said that there was a strong rise in the shares of Tata Group on Thursday. Tata Steel shares rose the most in Sensex by about four percent. Apart from Sensex, Tata Chemicals gained 11 per cent and Tata Teleservices (Maharashtra) and Tata Power gained more than seven per cent each.
Tata Consumer gained more than three per cent, while Tata Investment Corporation hit an upper circuit of five per cent. Tata Steel, Tata Consumer and Tata Motors were the top gainers on the Nifty.
According to investment banking firm Spark MWM, Tata Sons could potentially fetch a valuation of Rs 7-8 lakh crore at the current market capitalization of Tata group companies. There are many levers of value available from unlisted investments as the group is entering new age areas such as semiconductors (by Tata Electronics).
“Thus, we believe the group can capture additional value of Rs 1.5 lakh crore from unlisted investments and step-down subsidiaries such as Tata Technologies, Tata Metaliks and Rallis,” Spark MWM said. “We believe Tata Sons’ 80 per cent stake may not be monetizable, but the restructuring process could lead to a re-rating,” it said. Four companies within the Tata Group (Tata Motors, Tata Chemicals, Tata Power and Indian Hotels) hold ownership stakes in Tata Sons.
The report said that Tata Sons may be listed within the next one and a half years. The RBI last year classified Tata Sons as an upper tier NBFC, making it mandatory for the company to list itself on the exchanges by September 2025.
“We believe this development could lead to simplification of Tata Group’s complex group holding structure and enable some of the listed holding companies to liquidate their stake within the giant parent group,” the firm said.
