Tata Steel has 54.5 per cent stake in Tata Sponge and Tayo Rolls, and a 5.6 per cent stake in Tata Motors worth Rs 5,300 crore (Rs 53 billion), apart from 4.4 per cent in Titan Industries.
It could also sell stake in Dhamra Port and in African Alloys, bankers said.
Tata Sons to take stake
The Group’s holding company, Tata Sons, which made a record net profit of Rs 3,713 crore (Rs 37.13 billion) in 2012-13, is likely to pick up the stake in other Tata group companies, bankers say.
Ahmedabad-based Adani Group is said to be the frontrunner to buy out both Tata Steel and Larsen & Toubro’s stake in Dhamra.
Tata Steel will use these funds to retire its consolidated debt of Rs 66,074 crore (Rs 660.74 billion) as of March, which it had taken to buy Corus in 2007.
In FY13, it had sold a 4.37 per cent stake in Titan Industries, the entire stake in subsidiary Sila Eastern Ltd and the entire stake in Wuxi Ltd (China), a profit of Rs 940 crore (Rs 9.4 billion).
When asked, a Tata Steel spokesperson declined to comment on the issue, saying a sale of assets was 'speculative'.
The stock is down 30
India 4th LARGEST in steel output
India among BIGGEST steel producers in the world
Broader markets outperform benchmark indices
Tatas among the 10 best companies for leadership in Asia
Tata Motors launches bi-fuel variant of Nano