Key Points
As the buzz over the potential listing of Tata Sons, the holding company of the Rs 30 lakh crore conglomerate, grows louder, investors have already started betting on Tata Chemicals which could be the biggest beneficiary of the mega IPO..
Classified as an upper-layer NBFC last year by RBI, Tata Sons must list itself on stock exchanges by September 2025 under the rules..
"However, the only realistic way to get exposure to the potential value unlocking (of Tata Sons stake) is via Tata Chemicals wherein the ownership of Tata Sons potentially amounts to 80% of the companys market capitalisation..
"While investors are likely to give a holding company discount of 30-60%, while calculating the equity value, we value Tata Sons at Rs 7.8 lakh crore post factoring for a 60% holding company discount of its listed investments and valuing the unlisted investments at ~Rs1.6 lac crore..
The market value of Tata Sons' listed investments is estimated at Rs 16 lakh crore and the market value of unlisted investments could be worth around Rs 1-2 lakh crore given the group's foray into semiconductors and EV batteries...
