47 mins ago
Tata Sons listing could benefit Tata Steel, TMPV, Chemicals
Tata Sons is the holding company connected to many Tata group businesses.
Several Tata companies own small pieces of Tata Sons.
If Tata Sons is valued at about Rs 12 lakh crore, those pieces could be worth a lot of money.
Tata Chemicals’ stake alone is estimated at around Rs 30,000 crore.
Tata Steel and TMPV each have stakes estimated at about Rs 36,348 crore.
The Reserve Bank of India has kept Tata Sons on its upper-layer NBFC list.
It also rejected Tata Sons’ request to stop being registered as a core investment company.
These decisions have brought the question of a Tata Sons stock-market listing back into focus.
Tata Chemicals owns 2.53% of Tata Sons, valued at about Rs 30,000 crore.
Tata Steel and TMPV each hold approximately 3.06% stakes worth about Rs 36,348 crore.
Six listed Tata group companies together hold Tata Sons shares estimated at Rs 1.4 lakh crore.
The Reserve Bank rejected Tata Sons’ application to deregister as a core investment company.
Tata Sons’ listing remains in focus after its retention on the RBI’s upper-layer NBFC list.
- Who
- Tata Sons, the Reserve Bank of India, and listed Tata group companies including Tata Chemicals, Tata Steel and TMPV.
- What
- The RBI rejected Tata Sons’ application to deregister as a core investment company, renewing attention on a possible listing.
- Where
- The regulatory decision concerns India’s financial system and the potential listing would involve Indian stock exchanges.
- When
- The revised upper-layer NBFC list was released on August 6; trading will be closed on September 14 and resume on September 15.
- Why
- Tata Sons remained on the RBI’s upper-layer NBFC list, while its listed group companies hold stakes that could be valuable if Tata Sons is listed.
Key facts
- Estimated Tata Sons valuation
- About Rs 12 lakh crore
- Tata Chemicals stake
- 2.53%, estimated at around Rs 30,000 crore
- Tata Steel stake
- Approximately 3.06%, estimated at about Rs 36,348 crore
- TMPV stake
- Approximately 3.06%, estimated at about Rs 36,348 crore
- Combined listed-company holdings
- Six listed Tata group companies hold Tata Sons shares estimated at around Rs 1.4 lakh crore
- RBI decision
- Rejected Tata Sons’ application to deregister as a core investment company
- Market holiday
- The NSE and BSE will be closed on Monday, September 14, for Ganesh Chaturthi; trading resumes Tuesday, September 15
Quotes
Reserve Bank of India
India’s central banking authority discussing Tata Sons’ upper-layer NBFC inclusion
“without prejudice to the outcome of its application for de-registration, which is under examination.”
businesstoday.in
Sources
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