7 hrs ago
Tata Sons Listing Could Unlock Value for Tata Power
Tata Sons is the company that owns and guides many Tata Group businesses.
Tata Power owns a small 1.65% piece of Tata Sons.
Tata Sons may eventually be listed on the stock market, although this has not happened yet.
Axis Capital says such a listing could make Tata Power’s stake more valuable.
If Tata Sons were valued at ₹10 lakh crore, Tata Power’s stake might be worth about ₹16,500 crore.
After reducing that estimate for a holding-company discount, the possible benefit could be around ₹35 for each Tata Power share.
Axis Capital therefore kept its “Add” recommendation and set a ₹415 target price.
Tata Power shares recently fell and closed at ₹363.30.
Axis Capital retained an “Add” rating on Tata Power with a ₹415 target price, implying 14% upside.
Tata Power owns a 1.65% stake in Tata Sons, valued at about ₹4,189 crore at book value.
At a potential Tata Sons valuation of ₹10 lakh crore, Tata Power’s stake could be worth roughly ₹16,500 crore.
After applying a 30% holding-company discount, Axis Capital estimates about ₹35 per-share optionality for Tata Power.
Tata Power shares closed 0.5% lower at ₹363.30, despite gaining 159% over the longer term.
- Who
- Tata Power, Tata Sons, and Axis Capital are central to the assessment; the Reserve Bank of India also features in the listing-related development.
- What
- Axis Capital assessed how a possible Tata Sons stock-market listing could affect Tata Power’s valuation and share price.
- Where
- The potential listing would be on the stock exchanges; Tata Power’s cited trading data comes from the BSE.
- When
- The assessment was reported alongside Tata Power’s trading session; the article also cites Tata Power’s 52-week high in April 2026 and low in January 2026.
- Why
- Tata Power owns 1.65% of Tata Sons, so a higher valuation or listing of Tata Sons could increase the perceived value of Tata Power’s holding.
Key facts
- Axis Capital rating
- “Add” on Tata Power
- Target price
- ₹415, implying 14% upside from the cited closing price
- Tata Power stake in Tata Sons
- 1.65%, with a book value of about ₹4,189 crore
- Illustrative Tata Sons valuation
- ₹10 lakh crore, within a reported ₹9–12 lakh crore range
- Estimated stake value
- About ₹16,500 crore at the illustrative valuation
- Holding-company discount
- 30% applied by Axis Capital
- Estimated share optionality
- About ₹35 per Tata Power share
- Latest cited Tata Power close
- ₹363.30, down 0.5% on the BSE
Quotes
Axis Capital
Brokerage assessing Tata Sons’ regulatory status and potential listing
“Tata Sons gets one step closer to listing on the bourses, as it was reported that the Reserve Bank of India has rejected Tata Sons’ application to surrender its core investment company registration, owing to which Tata Sons’ would continue to be categorised as upper layer NBFC”
livemint.com
“If Tata sons were to list at ₹10 lakh crore valuation (murmurs of ₹9-12 lakh crore range) - Tata Power’s 1.65% stake could be valued closer to ₹16500 crore) which is ~14-15% of total current market cap of Tata Power”
livemint.com
Sources
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