How Tata Sons listing may impact Tata Power shares? Axis Capital explains

The potential listing of Tata Sons could emerge as a significant value-unlocking trigger for Tata Power, with the latter holding a stake in the Tata group’s holding company and promoter of Tata companies. As Tata Sons moves closer to a possible listing on the bourses, Axis Capital has assessed what the development could mean for Tata Power’s valuation and stock price.

The brokerage has highlighted upside potential for Tata Power and maintained an “Add” rating on the stock with a target price of ₹415, implying a 14% upside potential from Friday’s closing price.

“Tata Sons gets one step closer to listing on the bourses, as it was reported that the Reserve Bank of India has rejected Tata Sons’ application to surrender its core investment company registration, owing to which Tata Sons’ would continue to be categorised as upper layer NBFC," said the brokerage.

Tata Sons stake

As per the latest reported cross-holding, Tata Power owns a 1.65% stake in Tata Sons, at a book value of around ₹4189 crore. If Tata Sons were to list at a ₹10 trillion valuation, amid murmurs of a ₹9–12 lakh crore range,

“If Tata sons were to list at ₹10 lakh crore valuation (murmurs of ₹9-12 lakh crore range) - Tata Power’s 1.65% stake could be valued closer to ₹16500 crore) which is ~14-15% of total current market cap of Tata Power," highlighted Axis Capital

It further said that if a holding company discount of 30% was applied to this value, the per-share optionality impact on SOTP could be around ₹35 per share from the Tata Sons listing trigger.

“If we apply a holding company discount of 30% to this value, the per share optionality impact on SOTP could be around ₹35/share from Tata Son’s listing trigger," it noted.

Reverse holding

The brokerage also highlighted the reverse cross-holding between the two companies. Tata Sons owns 45.21% of Tata Power’s current market holding, which is worth ₹530 billion.

“Conversely, Tata Sons own 45.21% of Tata Power’s current market holding, which is worth ₹53000 crore, which at Tata Son’s potential listing value of ₹10 lakh crore would imply Tata Power representing 5.3% of Tata Son’s whole value," Axis Capital pointed out.

Axis Capital’s valuation data therefore highlighted the potential value implications for Tata Power if Tata Sons were to list at a valuation of ₹10 trillion.

Tata Power share performance

Tata Power ended 0.5% lower at ₹363.30 per share on the BSE in today’s trading session, extending the stock’s recent weakness.

The Tata Group stock had touched its 52-week high of ₹464.80 in April 2026, while its 52-week low stood at ₹342.35 in January 2026. At the current market price, the stock remained closer to its 52-week low than its 52-week high.

In the near term, Tata Power has delivered weak returns across various time frames. The stock has fallen 5% in 1 month, 10% in 3 months, 8% in 6 months and 6% in the last 1 year, according to the data provided.

Despite the recent weakness, the stock has generated strong returns over the longer term. Tata Power has delivered multibagger returns, rising 159% over the long term.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.