Windfall for listed group firms if Tata Sons goes public

Seven listed Tata companies together own 12.1 per cent in Tata Sons with a combined book value worth around 30,700 crore

- KRISHNA KANT

The Tata group’s major listed companies, seven in number, stand to make big gains if Tata Sons, the holding company of the conglomerate, goes for an initial public offering (IPO).

That will unlock the value of their investment in Tata Sons, done years ago at low valuations compared to Tata Sons’ likely valuation now.

The seven listed group companies together hold around 12.1 per cent in Tata Sons.

The listed companies’ stake in Tata Sons is their large unrealised gains, which will get a ‘proper’ market valuation if Tata Sons lists.

The listed group companies, such as Tata Motors, Tata Steel, Tata Chemicals, and Tata Power, are the third-largest block of shareholders in Tata Sons. They come after Tata Trusts and the Shapoorji Pallonji group.

Besides, Trent owns cumulative redeemable preference shares with a par value of ₹1,000 each — with their worth being ₹15 crore — in Tata Sons at the end of March this year.