**Meta:** Tata Group’s Tata Sons to invest ₹1,432 crore in Tata Projects’ rights issue. Discover the details of this strategic move.
**Content:**
### Tata Sons to Invest in Tata Projects’ Rights Issue
**Who:** Tata Sons, the holding company of Tata Group
**What:** Investing ₹1,432 crore in Tata Projects’ rights issue
**When:** Rights issue approved on March 13, 2024
**Where:** Tata Projects, a private limited company in India
**Why:** To raise ₹2,500 crore from existing shareholders for expansion and potential stock market listing
Tata Sons is set to invest ₹1,432 crore in the rights issue of Tata Projects, its engineering and construction subsidiary. This move comes as Tata Projects aims to raise ₹2,500 crore from its current shareholders, with the board approving the rights issue on March 13, 2024. Following this initiative, Tata Projects is also considering a listing on domestic stock markets.
### Funding Source and Dividend Returns
– Tata Sons will fund its investment through dividend returns from Tata Consultancy Services (TCS).
– TCS has declared a special dividend of ₹66 per share and an interim dividend of ₹10 for the October to December quarter.
– Tata Sons is expected to receive ₹24,931 crore from TCS’s dividend distribution.
### Financial Outlook for Tata Projects
– Tata Projects specializes in engineering, procurement, and construction activities and was established in 1979.
– Tata Sons holds approximately 57% of Tata Projects, with the remainder owned by other Tata group companies, including Tata Power and Tata Chemicals.
– According to a Crisil report, Tata Projects is projected to generate cash flow between ₹300 to ₹400 crore in the financial year 2024-25, with a cash balance exceeding ₹600 crore as of June 30, 2024.
– The company has unutilized credit of nearly ₹1,000 crore, with fund-based bank limits averaging 64% utilization over the past year.
### Major Projects and Developments
Tata Projects is currently constructing a semiconductor assembly and testing plant for Micron Technology in Sanand, near Ahmedabad. Once completed, this facility is expected to be the largest back-end semiconductor unit in the region.
**Conclusion:** With Tata Sons’ significant investment in Tata Projects, the company is poised for growth and potential market expansion. How will this investment impact Tata Projects’ future endeavors?
**FAQs:**
**Q: What is the purpose of Tata Projects’ rights issue?**
A: The rights issue aims to raise ₹2,500 crore from existing shareholders to support expansion and potential listing on domestic stock markets.
