Potential Tata Sons listing could add ₹35 a share to Tata Power’s SOTP, Axis Capital says
Axis Capital estimates Tata Power’s 1.65% Tata Sons stake could be worth about ₹16,500 crore at a ₹10 lakh crore Tata Sons valuation, versus a ₹4,189 crore book value. The brokerage sees ₹35-a-share SOTP optionality, as RBI scrutiny raises the prospect of a Tata Sons listing.
What happened
Axis Capital says a potential Tata Sons listing could unlock value for Tata Power’s 1.65% stake, estimating Rs 35 per-share SOTP optionality at a Rs 10 lakh
Key facts
- Tata Power owns 1.65% of Tata Sons
- Stake book value: Rs 4,189 crore
- Potential Tata Sons valuation: Rs 10 lakh crore (reported range Rs 9-12 lakh crore)
- Implied Tata Power stake value: Rs 16,500 crore
- Stake equivalent to 14-15% of Tata Power market capitalisation
- 30% holding-company discount
- Potential SOTP optionality: Rs 35 per Tata Power share
- Tata Sons owns 45.21% of Tata Power
- Tata Sons' Tata Power holding value: around Rs 53,000 crore
- Tata Power value represents around 5.3% of Tata Sons value
- Tata Power share price: Rs 361.75
- Axis Capital target price: Rs 415
- Implied upside: 14.72%
Why this matters
A Tata Sons listing would establish a market benchmark for cross-holdings and could unlock options around portfolio valuation, stake monetisation, and capital allocation.