Private Equity

PE Fund Investments

Tata Sons looks to sell stakes in group firms to raise funds

Mint  

Tata Sons, the holding company of Tata group, is looking to raise funds from global private equity firms and strategic investors by selling minority stakes in group firms as it looks to shore up its capital base to fund emerging businesses such as e-commerce and clean energy. The conglomerate is initially looking to raise at least INR 5,000 crore through potential stake sales in group companies starting with Tata Consumer Products Ltd, Tata Power and Tata Realty and Infrastructure. The raised funds will be used primarily for investments in the group's TataNeu super-app venture, a unit of Tata Digital. Goldman Sachs and JP Morgan have been mandated to scout for potential investors. A portion of the new capital would be used to trim the Tata group's debt and also support the working capital needs of the new ventures including the aviation business (Air India), renewable energy business and the planned super-app business.