Tata Sons’ Chairman N Chandrasekaran has been vocal about simplifying cross holding within group firms since he took over last February. Investors have been demanding a simpler holding structure within the group to get clarity on valuation.
Last June, Tata Sons bought a 2.85 per cent stake in Tata Motors, worth Rs 38 billion. The simplification process is expected to get over soon as Tata Trusts have a miniscule holding in Tata Group's firms.
Tata Trusts, a group of charitable trusts own a 66 per cent stake in Tata Sons, acts as the primary holding company for Tata Group. Cross holding within group firms have been a legacy issue that has bothered investors. “In a crisis situation this will provide the company boards clarity on ownership,” said Shriram Subramanian, managing director, InGovern.