Mumbai, India – September 16, 2026 – Tata Power Company Ltd. stands to gain substantial value from a potential listing of Tata Sons, the conglomerate's holding entity, according to a recent analysis by Axis Capital. The brokerage has reiterated its 'Add' rating on Tata Power stock, setting a target price of Rs 415 per share.
Axis Capital highlights that Tata Power currently holds a 1.65 percent stake in Tata Sons, which serves as the promoter for numerous Tata Group companies. This stake is carried on Tata Power's books at a value of approximately Rs 4,189 crore.
Potential Valuation Impact
Should Tata Sons achieve a market valuation of Rs 10 lakh crore upon listing – a figure within the reported range of Rs 9-12 lakh crore – Tata Power's 1.65 percent holding would be valued at an estimated Rs 16,500 crore. This potential valuation translates to roughly 14-15 percent of Tata Power's current market capitalization.
After applying a 30 percent holding-company discount, Axis Capital calculates a potential sum-of-the-parts (SOTP) optionality of around Rs 35 per Tata Power share, driven by a Tata Sons listing event.
Regulatory Developments Fuel Listing Prospects
The prospect of a Tata Sons listing has gained traction following the Reserve Bank of India's (RBI) rejection of its application to surrender its core investment company (CIC) registration. This decision implies that Tata Sons is likely to remain classified as an upper-layer non-banking financial company (NBFC), which could necessitate a public listing.
The report also points out the reverse holding structure: Tata Sons owns 45.21 percent of Tata Power. Based on Tata Power's current market value, this stake is worth approximately Rs 53,000 crore. At a Rs 10 lakh crore valuation for Tata Sons, Tata Power's market value would constitute about 5.3 percent of the holding company's total value.
As of Wednesday's late trading session, Tata Power shares were trading slightly lower at Rs 361.75. Axis Capital's 12-month target price of Rs 415 suggests an upside potential of 14.72 percent from current levels, factoring in the potential value unlock from the Tata Sons listing.