But won’t this value be discounted again. There are two holding companies here.
Tata Chem (Holdco discount)
Tata Sons (Holdco discount)
Underlying Tata companies
Here we go. May not list at all. Enjoy the fireworks on monday!!!
Tata Sons charting new path to sidestep Dalal Street - The Economic Times (indiatimes.com)
As far as I understood, there are/were fireworks due to IPO buzz. Now TATA sons like to avoid the ipo for now. Does this mean lower ckt on Monday?
Yes. Onlyreason it went up was because of the IPO news.
So deep negative territory for next few days. Same for Tata Power, Investment and others.
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I am just curious. If a company has a stake in another, atleast some part of that company’s value should definitely reflect irrespective of being public or private. So shouldn’t tata chemical reflect some value tata sons irrespective of ipo.
Why not consider it like a promoter who will never sell his stake and collects dividends(like berkshire). I know that holdco discount theory but looking through another lens is also important. Today market might give reasons to have huge discounts in some holdco but later sentiments might change.
Feel free to counter.
Disc : not invested.
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