3 hrs ago
Tata Sons to Pursue Public Listing After RBI Rejection
Tata Sons is planning to become a publicly listed company.
This follows the Reserve Bank of India rejecting its request to deregister.
A public listing would allow investors to see a market price for Tata Sons shares.
Some Tata companies already own parts of Tata Sons.
Analyst Ambareesh Baliga said these companies could benefit if those shares become more valuable or easier to sell.
He said Tata Chemicals could hold Tata Sons shares worth about Rs 25,000 crore.
He also identified the Shapoorji Pallonji Group as a major potential beneficiary.
Analysts said consumers could see more transparency and investment after a listing.
Tata Sons will pursue a public listing after the Reserve Bank of India rejected its deregistration.
Analyst Ambareesh Baliga said Tata-listed companies holding Tata Sons shares could benefit from price discovery.
Tata Chemicals holds approximately 2.5% of Tata Sons, according to Baliga.
Baliga estimated Tata Sons shares held by Tata Chemicals could be worth Rs 25,000 crore versus its own Rs 15,000 crore market capitalization.
Analysts said a listing could increase transparency, scrutiny and investment, while benefiting the Shapoorji Pallonji Group.
- Who
- Tata Sons, the Reserve Bank of India, analyst Ambareesh Baliga, Tata Chemicals and the Shapoorji Pallonji Group.
- What
- Tata Sons will pursue a public listing after the Reserve Bank of India rejected its deregistration.
- Where
- When
- Why
- The listing could establish a market price for Tata Sons shares and bring greater transparency, scrutiny and potential investment.
Key facts
- Company
- Tata Sons
- Regulatory decision
- The Reserve Bank of India rejected Tata Sons' deregistration.
- Potential action
- Tata Sons will pursue a public listing.
- Tata Chemicals holding
- Approximately 2.5% of Tata Sons.
- Estimated holding value
- Baliga estimated Tata Chemicals' Tata Sons stake could be worth Rs 25,000 crore.
- Tata Chemicals market capitalization
- Approximately Rs 15,000 crore, according to Baliga.
- Potential effects
- Analysts cited greater transparency, scrutiny and potentially more investment.
Quotes
Ambareesh Baliga
Independent market analyst quoted by Times Now Digital
“The Shapoorji Pallonji Group will be the biggest gainer-they were trying to strike a deal for Tata Sons equity in the past but now they can place it with institutional investors and get the much needed cash flow for their Group.”
timesnownews.com
“Tata listed players who hold some stake in Tata Sons will sentimentally benefit due to discovery of the market price for their holding.”
timesnownews.com
Sources
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