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Tata Sons, the holding company of Tata Group, plans to acquire an additional 12.65 per cent stake in Tata Autocomp Systems (TACO) for Rs 2,122 crore from Tata Capital, bringing the total equity valuation of TACO to Rs 16,800 crore, according to Tata Capital’s filings.
Currently, Tata Sons holds a 40 per cent stake in Tata Autocomp Systems, while Tata Motors owns 26 per cent. The remaining stake is held by other Tata companies.
The transaction is expected to be completed before the end of the ongoing financial year. In its filings, Tata Capital stated that to support business growth, maintain a strong capital adequacy ratio, and ensure smooth operations, it has entered into and may engage in various transactions with Tata Sons.
These include the sale of investments, brand equity and business promotion contributions, rendering of services, and other transactions for business purposes, including lending and borrowing of funds.
As the aggregate value of the sale of investment and other transactions with TSPL during FY25 is estimated to be up to Rs 2,500 crore, which is approximately 13.76 per cent of Tata Capital’s consolidated turnover for FY24, Tata Capital sought shareholder approval for the related party transactions.
Bankers have indicated that Tata Capital is preparing for a potential listing after the Reserve Bank of India (RBI) classified the company as an NBFC-Upper Layer, which requires it to be listed by September next year. Tata Capital is also in the process of merging Tata Motors' auto finance arms with itself.
According to an earlier RBI circular, all companies classified as NBFC-Upper Layer must be listed by September 2025. This would have required Tata Sons to list itself.
However, during FY24, TSPL paid off its entire debt of Rs 21,813 crore and applied to the RBI for declassification from NBFC-Upper Layer status, ruling out any potential listing.
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