Tata Sons to bring country's biggest IPO, company with Rs 8 lakh crore valuation offers earnings opportunity

Tata Sons may be listed on the stock exchange in the next year and a half. Tata Sons can bring the biggest IPO in the history of Indian stock market and through this IPO Tata Sons can raise around Rs 55000 crores from the market. Tata Sons is estimated to be worth Rs 8 to 11 lakh crore.

Banking sector regulator Reserve Bank of India declared Tata Sons as an upper tier NBFC in September 2022, making it mandatory for the company to list on stock exchanges by September 2025.

Tata Sons investment worth Rs 16 lakh crore

Mumbai-based Spark MWP Pvt Ltd has released a research report on Tata Sons. According to this report prepared by research analyst Vidit Shah, the market value of Tata Sons' investments in stock exchange listed companies of the Tata Group is estimated at Rs 16 lakh crore. While the book value of unlisted investments may be around 0.6 lakh crore. While the market value of the unlisted investment could be Rs 1-2 lakh crore after the group enters the semiconductor and EV battery business.

Investors reportedly discount 30 to 60 percent when calculating the holding company's equity value. Giving a 60 percent discount, Tata Sons is valued at Rs 7.8 lakh crore and unlisted investments at Rs 1.6 lakh crore. According to reports, the market also discounts Godrej Industries and Bajaj Holdings in the same range. According to the report, 80 percent holding of Tata Sons cannot be monetized. A re-rating of Tata Sons is possible through this restructuring process.

Tata Sons owns 72.4% stake in TCS.

Dorabji Tata Trust owns 28 per cent stake in Tata Sons. So Ratan Tata Trust has 24 percent, Other Promoters Trust has 14 percent, Sterling Investment Corporation has 9 percent, Cyrus Investments has 9 percent, Tata Motors and Tata Chemicals have 3 percent, Tata Power 2 percent, Indian Hotels 1 percent. Companies have 7 percent stake. TCS is a major contributor to Tata Sons' valuation with a 72.4 per cent holding.