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)  

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?