New Delhi:

Tata Sons may for the first time consider a large-scale monetization move to raise funds for new businesses. The company recently raised Rs 9,300 crore by selling a 0.65 per cent stake in IT giant Tata Consultancy Services, a first in the direction of the Tata family.

The Tata Group has so far avoided monetizing assets as a strategy but has now revised its policy and the recent stake sale in TCS is part of this new strategy, a senior executive told NDTV Profit.

Prior to this, Tatas had divested its stake in TCS only twice, in 2006 and 2007. TCS, India’s largest software services provider, has also bought back shares worth Rs 83,000 crore since 2017. Tata Sons has received nearly Rs 60,000 crore of investment from the Tata Group. Repurchase.

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However, the group may need more capital to expand into new businesses such as clean energy and semiconductors.

Tata Sons Chairman N Chandrasekaran highlighted the foray into electric vehicles, new energy and semiconductors while speaking at NDTV India 2024 annual event on Saturday.

Tata companies may conduct IPO

The group may divest its stake through a stake sale and initial public offering (IPO). The group’s DTH provider Tata Play has submitted confidential documents for its IPO to the stock market regulator.

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Financial services companies such as Tata Capital, Tata AIG and Tata AIA are also expected to participate in large-scale IPO activities. In the infrastructure space, Tata may consider divesting its stakes in Tata Realty, Tata Homes and Tata Projects. Tata Digital’s Tata Cliq, Tata 1mg, Big Basket and Croma brands are also among the potential candidates.

Create value

Tata Sons has performed well in creating value through investments, and as of March 2023, it had invested Rs 61,453 crore in listed companies with a total value of Rs 1,120 crore. Its investment in unlisted subsidiaries is Rs 56,646 crore, of which Digital Enterprises invested Rs 18,942 crore and Tata Capital invested Rs 7,497 crore.