Alchemist, what are the chances that the entire Tata group is rerated downwards? For example, one route of raising the money could be selling off stock held by Tata Capital or Tata Investments?
Tata Group is a very large group and is in a position to easily absorb the losses.
The recent Tata-Docomo deal has valued the unlisted Tata Teleservices at around Rs 50000 crore.
Tata Groups also has other big companies like
TCS: market value = Rs 52000 crore.
Tata Power: market value = Rs 16500 crore.
Tata Communications: market value = Rs 14000 crore.
If need arises, "Tata Sons" has a lot that it can sell to raise cash. It may sell small chunks of many of its companies and raise the cash.
Besides that, Tata Motors also has a holdings in its subsidiaries and other companies. Some of these may be put on the block to raise extra cash.
Investors should wait till April 2009 and see how much damage the pension liabilities do to the company.