ET Intelligence Group: The stocks of Tata group companies including Tata Steel, Tata Motors PV, and Tata Chemicals are likely to gain momentum after losing 8-22% on the bourses in three months. Investors are expected to price in stakes of these companies in Tata Sons as it inches closer to listing publicly following the RBI‘s instructions to comply with the regulations governing the upper-layer investment companies.

Each of these three companies hold 2.5-3% stake in Tata Sons, the group’s holding company. In all, seven listed and two unlisted group companies hold between 0.4% and 3.1% stake each in Tata Sons.

For Tata Chemicals, the estimated value of its 2.5% stake in Tata Sons is around ₹30,000 crore, nearly two-times its market cap of ₹15,597 crore. The stock has lost 18% in three months and 20% year-to-date.

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Tata Sons’ market valuation is estimated to be ₹11.9 lakh crore based on the value of its stakes in group companies.

Each of Tata Steel and Tata Motors PV owns around 3.1% stake in Tata Sons, amounting to ₹36,348 crore or 16% and 33% of their respective market caps in that order.
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Other group companies including Indian Hotels, Tata Consumer and Tata Power hold 0.4-1.6% stake in Tata Sons. Together, these six companies hold an estimated ₹1.4 lakh crore worth of shares in Tata Sons.

Shapoorji Pallonji Group is weighing the option to raise funds or extend about ₹3,500 crore of debt due to Porteast and scheduled for repayment by the end of September, as the central bank’s effective mandate of a Tata Sons listing provides clear path to investors for debt repayment, people familiar with the matter said. The RBI mandate would also build broader investor trust in the ability of the infrastructure conglomerate to monetise its stake in the Tata group holding company and meet future redemption commitments, they said.

SP Group will decide whether to raise ₹3,500 crore for repayment or request for additional time to meet the repayment deadline, the people said.

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Given a clear exit path for SP Group lenders through listing of Tata Sons, lenders would be receptive for an extension of the September 30 payment timeline, said people familiar with the developments. SP Group had raised ₹28,500 crore through NCDs in May 2025, at Porteast, which were backed by a pledge of a 9.2% stake in Tata Sons. The bonds were originally priced at 19.75%.

The refinancing comes as Shapoorji Pallonji Group’s debt investors gain greater visibility on a potential value-unlocking event at Tata Sons following the Reserve Bank of India‘s rejection of Tata Sons’ application to voluntarily surrender its core investment company registration.

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SP Group had raised about ₹15,200 crore through three-year rupee-denominated zero-coupon bonds issued by Eqyizen Investment at a yield of 18.95%, alongside a $650 million bond issued by Mercury Finance at 14.5%. The instruments were raised largely against the group’s Tata Sons holding. Funds raised at the Eqyizen level were used primarily to refinance about ₹16,500 crore of rupee bonds at Goswami Infratech.This request from SP Group would follow the regulatory rejection of a Tata Sons request for de-registration as an NBFC.

Investor demand for SP Group debt has improved, with recent trades tightening and investors indicating that the earlier 18%-19% IRR reference level is no longer relevant following positive developments around Tata Sons, people familiar with the matter said.

Apart from Porteast, Equizen financing also carries a deleveraging covenant requiring repayment of at least ₹13,500 crore within 24 months of issuance.