If Tata Sons brings out IPO, which listed Tata stock will gain the most?
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. Shares of Tata Chemicals rallied 8% to the day's high at Rs 1,084.80 on BSE on Tuesday.
Classified as an upper-layer NBFC last year by RBI Tata Sons must list itself on stock exchanges by September 2025. It was last year reported that Tata Sons could be worth Rs 11 lakh crore and a 5% stake sale would lead to an IPO size of about Rs 55,000 crore.
Tata Sons is majorly owned by Dorabji Tata Trust (28%) and Ratan Tata Trust (24%). Both Tata Motors and Tata Chemicals own about 3% stake in the holding company, while Tata Power owns 2% and Indian Hotels 1%.
«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 company’s market capitalisation. The stake is worth 16-21% of the market capitalisation for the other three companies,» said Vidit Shah of Spark Capital.
Calculations done by the brokerage show that the value of Tata Chemicals' 3% stake in Tata Sons is worth around Rs 19,850 crore or 80% of the market value of the company.
«The intrinsic business of Tata Chemicals is trading at ~11x FY25 PE (worth Rs 10,900 crore), which we believe to be fair given the headwinds that the soda ash industry is currently facing. However, valuations could potentially re-rate on announcements of growth
