Tata Sons maintains strategic control over both its financial businesses and had also infused Rs 1,000 crores of capital in Tata Capital.
Source: Reuters
Tata Sons Ltd is in the ‘exploratory stages’ of a stake sale from its financial services business, Tata Capital and Tata Asset Management to raise funds and for investments in other businesses including online retail businesses, Mint reported citing two people directly aware of the matter.
“The talks are currently at an exploratory stage,” said one of the two people cited above. “Several large global investment banks have been sounded out, and a final road map will be laid out soon.”
Moneycontrol could not independently verify the report.
Tata Digital has also officially applied for the Competition Commission of India (CCI) nod to acquire a 64.3 percent stake in Supermarket Grocery Supplies Pvt Ltd, which owns and operates online grocery firm BigBasket.
“The lending business undertaken by Tata Capital through various divisions is a cash-intensive business, and the group feels that the invested capital once freed can be used more efficiently elsewhere,” said the first person. “The group has not taken a final call on the quantum of divestment and how much it wants to raise from the proposed stake sales.”
Email sent to spokespeople for Tata Sons and Tata Capital by Mint didn’t elicit a response.
Reportedly, Tata Sons maintains strategic control over both its financial businesses and had also infused Rs 1,000 crores of capital in Tata Capital.
