Tata Sons to Invest Rs 14.32 Billion in Tata Projects' Rights Issue
ECONOMY & POLICY

Tata Sons to Invest Rs 14.32 Billion in Tata Projects' Rights Issue

Tata Sons will invest Rs 14.32 billion in the rights issue of Tata Projects, its engineering and construction subsidiary, as part of the company's Rs 25 billion fundraising plan. The board and shareholders approved the rights issue on Thursday, according to regulatory filings. 

Founded in 1979, Tata Projects operates in energy, industrial infrastructure, urban development, and services. Tata Sons currently holds a 57% stake, with the remaining shares owned by other Tata Group entities, including Tata Power and Tata Chemicals. Following the rights issue, the company is considering a potential stock market listing.
 
According to Crisil, Tata Projects is expected to generate Rs 3-4 billion in cash accruals in FY25 and had an unencumbered cash balance exceeding Rs 6 billion as of June 30, 2024. The company also has Rs 10 billion in unutilised credit, further strengthening its liquidity position. 

Tata Sons will fund its investment in Tata Projects through dividends from Tata Consultancy Services (TCS), which recently announced a special dividend of Rs 66 per share and an interim dividend of Rs 10 per share for the December quarter. With previous interim dividends, Tata Sons is set to receive Rs 249.31 billion from TCS in the first nine months of FY25. 

These funds will also support Tata Sons’ investments in Tata Capital’s rights issue and Tata International. The group plans to list Tata Capital by September, aiming to raise up to $1.5 billion through an initial public offering. 

(Business World)  

Tata Sons will invest Rs 14.32 billion in the rights issue of Tata Projects, its engineering and construction subsidiary, as part of the company's Rs 25 billion fundraising plan. The board and shareholders approved the rights issue on Thursday, according to regulatory filings. Founded in 1979, Tata Projects operates in energy, industrial infrastructure, urban development, and services. Tata Sons currently holds a 57% stake, with the remaining shares owned by other Tata Group entities, including Tata Power and Tata Chemicals. Following the rights issue, the company is considering a potential stock market listing. According to Crisil, Tata Projects is expected to generate Rs 3-4 billion in cash accruals in FY25 and had an unencumbered cash balance exceeding Rs 6 billion as of June 30, 2024. The company also has Rs 10 billion in unutilised credit, further strengthening its liquidity position. Tata Sons will fund its investment in Tata Projects through dividends from Tata Consultancy Services (TCS), which recently announced a special dividend of Rs 66 per share and an interim dividend of Rs 10 per share for the December quarter. With previous interim dividends, Tata Sons is set to receive Rs 249.31 billion from TCS in the first nine months of FY25. These funds will also support Tata Sons’ investments in Tata Capital’s rights issue and Tata International. The group plans to list Tata Capital by September, aiming to raise up to $1.5 billion through an initial public offering. (Business World)  

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code