New Delhi: Tata Groups main holding company Tata Sons holds a 93% stake in its financial services company Tata Capital. The value of this stake is now estimated at around Rs 98178 crore (ie about $ 11.4 billion). This value of Tata Capital has been derived on the basis of the rights issue held in March in which the price per share was kept at Rs 281. Tata Capitals FY25 annual report states its total equity value as Rs 1.05 lakh crore on the basis of which it is ranked eighth among Indias top 10 non-banking financial companies (NBFCs). What will Tata Group do with Tata Capital? Tata Sons is now preparing to sell up to 18 per cent of its stake in Tata Capital through an Initial Public Offering (IPO). According to sources Tata Sons can get Rs 17672 crore from this IPO. The company had applied for IPO confidentially with SEBI (Securities and Exchange Board of India) which has been approved. Tata Capital has been classified as an upper layer NBFC by the Reserve Bank of India (RBI) under whose rules it will have to get a public listing by September. Apart from Tata Sons Tata Capitals shareholders include its employees and the International Finance Corporation (IFC). What is market status of Tata Sons? Tata Sons is currently facing a cash flow shortage. Its dividend income and earnings from share buybacks are expected to fall 3.5 per cent to Rs 36514 crore in FY25 from Rs 37832 crore last year. This will be the first such reduction in almost a decade. Tata Sons standalone operating income grew 25 per cent to Rs 43767 crore in FY24 with 95 per cent coming from dividends and buybacks from Tata Consultancy Services (TCS). What can Tata Sons do now? The dividend income from TCS is expected to decline to Rs 32722 crore from Rs 34053 crore in FY25. Meanwhile Tata Sons which is now debt-free and classified as an upper layer NBFC has applied to the RBI to exit this classification which is pending. In June Tata Capital approved a second rights issue of Rs 1752 crore in which Tata Sons can invest an additional Rs 1630 crore. The proceeds from the IPO will help Tata Sons increase investments in emerging sectors such as semiconductor manufacturing and electronics.