Tata Sons listing: How will it impact the Tata Group shareholders?

New Delhi, Sept. 22 -- Once the board of directors of Tata Sons Private Limited agreed to go public, following the Reserve Bank of India's (RBI) directive, market observers have been busy calculating the impact of the Tata Sons listing on its shareholders. Looking at the full list of Tata Sons shareholders, Sir Dorabji Tata Trust holds the largest stake, at around 27.98%, followed by Sir Ratan Tata Trust, which holds a 23.56% stake in Tata Sons.

Among Tata Group companies, Tata Motors holds a 3.06% stake in the Tata Group holding company, Tata Chemicals holds 2.53%, Indian Hotels Company holds 1.11%, and Tata Power holds 1.65%.

Speaking on the Tata Sons valuations, Anuj Gupta, a SEBI-registered market expert, said, "Tata Sons valuations would fall around Rs.12 lakh crore to 12.50 lakh crore, and the total number of shares that are currently under the RBI's lens for listing is around 4.04 lakh. So, one Tata Sons share price in the pre-listing phase falls around Rs.3 crore."

Taking a cue from the above valuations of Tata Sons, the absolute value of Sir Dorabji Tata Trust shareholding would be Rs.3,39,201 crore ( Rs.3 crore x 1,13,067).

The shareholding of Sir Rata Tata Trust, which owns 95,211 Tata Sons shares, is expected to amount to Rs.2,85,633 crore ( Rs.3 crore x 95,211).

Shareholding of Tata Social Welfare Trust, which holds 15,075 Tata Sons shares, may amount to Rs.45,225 crore. The shareholding of Tata Education Trust would remain the same, as it also holds the same number of Tata Sons shares.

JRD Tata Trust owns 16,200 shares of Tata Sons. So, the shareholding of JRD Tata Trust would amount to Rs.48,600 crore.

Shapoorji Pallonji Group owns 18.36% stake in Tata Sons through its subsidiary companies. Shapoorji Pallonji Group owns a 9.18% stake, or 37,120 Tata Sons shares, each held in the names of Cyrus Investments and Sterling Investment Corp.

After theTata Sons share listing, the shareholding of Shapoorji Pallonji Group via Cyrus Investments and Sterling Investment Corp would amount to Rs.2,22,720 crore ( Rs.1,11,360 crore each).

Shapoorji Mistry owns 108 shares of Tata Sons Private Limited in an individual capacity, which are expected to be worth Rs.354 crore post-Tata Sons listing.

The shareholding of Jimmy Naval Tata, who holds 3,262 shares in Tata Sons, is expected to be worth Rs.9,786 crore.

Noel Tata holds 2,055 shares of Tata Sons, valued at Rs.6,165 crore, whereas Simone Tata's 2,011 Tata Sons shares are worth Rs.6,033 crore.

As mentioned above, some Tata Group companies have exposure to Tata Sons Private Limited, including Tata Chemicals, Tata Motors, Tata Power, and IHC.

Tata Motors holds 12,375 shares of Tata Sons, valued at Rs.37,125 crore.

Tata Chemicals owns 10,237 Tata Sons shares, which is expected to be of Rs.30,7112 crore.

Tata Power owns 6,673 shares of Tata Power, which may amount to Rs.20,019 crore.

Likewise, IHC holds 4500 shares of Tata Sons, which may amount to Rs.13,500 crore.