Tata Sons, the investment-holding arm of Tata group companies, could fetch valuation of Rs 7-8 trillion in an initial public offering (IPO), based on the current market capitalisation of group firms, according to a report.

The market value of Tata Sons’ listed investments is estimated at Rs 16 trillion. The group could derive another Rs 1-1.5 trillion of value from unlisted investments and step-down subsidiaries such as Tata Technologies, Tata Metalliks and Rallis, according to a report by investment banking firm Spark PWM.

Investors are likely to give a holding company a 30-60% discount when calculating the equity value, and Tata Sons’ value would be Rs 7.8 trillion, factoring a 60% discount, it said.

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