Tata Sons the holding company of the Tata Group is planning to invest Rs 1432 crore in the rights issue of its engineering and construction arm Tata Projects which aims to raise Rs 2500 crore from its shareholders. As per regulatory filings the rights issue has been cleared by Tata Projects board of directors and shareholders. Citing company officials a report by Business Standard said Tata Projects will consider becoming a listed company after its rights issue. Supplemented by an unencumbered cash balance of over Rs 600 crore as of June 30 2024 the firm is expected to generate cash accruals of Rs 300-400 crore in FY25 as per rating agency Crisil the report said. In its report in August last year Crisil noted that Tata Projects resources are likely sufficient to meet debt obligations of around Rs 544 crore and planned capital expenditure of Rs 400-450 crore for the year adding that the companys liquidity is bolstered by moderate utilisation of fund-based bank limits that averaged 64 percent over the 12 months to June 2024 leaving around Rs 1000 crore in unutilised credit. As per the Business Standard report Tata Sons will invest in Tata Projects from the dividend the holding company is set to receive from Tata Consultancy Services (TCS) in the first nine months of FY25. TCS India’s largest software exporter has announced a special dividend of Rs 66 per share along with an interim dividend of Rs 10 for the December quarter. Tata Sons is set to receive Rs 24931 crore in dividend from TCS in the first nine months of the ongoing fiscal year. The IT major had earlier issued Rs 10 per share interim dividends in the first two quarters. According to the report the hefty dividend from TCS will also support Tata Sons subscription to Tata Capital’s rights issue and investments in Tata International as the salt-to-software conglomerate plans to list Tata Capital its financial services arm by September 2025 and aims to raise up to $1.5 billion through an initial public offering (IPO). About Tata Projects Established in 1979 Tata Projects is one of the leading engineering procurement and construction firms in the country engaged in energy and industrial infrastructure urban infrastructure and services. Tata Sons holds a 57 per cent stake in Tata Projects and the rest lies with other Tata group companies including Tata Power and Tata Chemicals. Ratan Tata and the Tata Group Ratan Tata the former Chairman of the Tata Group who passed away at the age of 86 at Mumbais Breach Candy Hospital in October last year led the salt-t0-software conglomerate for over 20 years transforming it into a global powerhouse with over 100 companies spread in more than 100 countries boasting a market cap of $403 billion (roughly Rs 33.7 trillion). Ratan Tata joined the Tata Group in 1962 after returning from the United States where he had earned a bachelors degree in architecture at Cornell University. In 1991 he took over as the chairman of the conglomerate and brought much-needed reforms in the company founded by his great-grandfather Jamshedji Nasirwanji Tata in 1868. In 2008 Ratan Tata was conferred with the Padma Vibhushan India’s second-highest civilian honor for his invaluable contribution to the Indian industry.