Tata Sons Board to Discuss Investment Plans for Emerging Biz Ahead of Tata Capital IPO

Tata Group’s holding company, Tata Sons, has planned to hold discussions for the next round of capital allocation for the salt-to-power conglomerate’s emerging ventures, including Tata Electronics and Tata Digital, on February 24. Tata Sons board is also set to discuss the roadmap for the planned public issue of Tata Capital, according to the Economic Times. 

Apart from the planned initial public offerings (IPO) of Tata Capital, Tata Sons board is also likely to deliberate on the third quarter results of the financial year 2024-25.

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Tata Group’s Bet on Emerging Businesses 

The development comes at a time when Tata Sons chairman N Chandrasekaran is pinning hopes on the emerging businesses and making major expansion moves to make them more profitable. All investments in the new ventures reportedly are being done via equity investments and internal accruals and in the future, it is likely to be done through dividends. 

Speaking at the NIT Trichy Global Alumni Meet in December last year, Chandrasekaran said the group has planned to invest $18 billion in its electronics and semiconductors business. He also added that the company is focused on transforming the recently acquired Air India into a world-class airline. 

“My commitment is to take every effort to make Air India, an absolute top-class airline in the world,” said the Tata Sons chairman. 

The salt-to-power conglomerate earlier mentioned that it aims to bring Tata Electronics, Tata Digital, and Air India amongst the list of its top 10 businesses. 

Tata Capital IPO 

The group is also gearing up for the listing of its flagship non-banking finance arm in 2025, which is valued at around Rs 15,000 crore. The salt-to-power conglomerate has appointed Kotak Mahindra Capital as an investment bank and Cyril Amarchand Mangaldas as a legal advisor for the public issue. According to a MoneyControl report, the board of Tata Capital approved changes to its memorandum of association and adopted a new set of articles of association (AoA) to tune in with the provisions of the Companies Act, 2013.  

Recently, the company, in an exchange filing on Tuesday, announced that the board of Tata Capital is planning to consider raising funds worth $165 billion via share sale to existing investors.