Tata Sons to participate in Tata Projects' rights issue, invest Rs 1,432 crore: Report

The Tata group’s holding company Tata sons holds 57 percent stake in the company, while the rest is with other firms in the conglomerate, including Tata Power and Tata Chemicals.

Tata Sons will invest Rs 1,432 crore in the rights issue of the group’s engineering and construction arm Tata Projects, a report by Business Standard said on March 14.

The subsidiary aims to raise Rs 2,500 crore from its shareholders under its rights issue, which was cleared by the board on March 13, the newspaper said.

The company was founded in 1979 and is one of the leading engineering, procurement and construction firms in the country. The firm has three key sectors, namely energy and industrial infrastructure, urban infra and services. The Tata group’s holding company Tata sons holds 57 percent stake in the company, while the rest is with other firms in the conglomerate, including Tata Power and Tata Chemicals.

The firm is building US-based chip company Micron Technology’s semiconductor assembly and test facility at Sanand near Ahmedabad and the construction is going on in ‘full swing’. The construction had began in July last year.

A top executive of the firm said the plant once ready will be the world’s largest back-end semiconductor unit.