Indian business conglomerate Tata Group is mulling a listing at London bourses for a new entity, a British media report has said. But the group's headquarters in India on Monday dismissed any such move."Tata is finally to make its London stock market debut through its participation in a hush-hush new venture called the Mango Tree India Fund," a report in The Sunday Times said over the weekend.
When contacted by PTI, a Tata group spokesperson in Mumbai denied any such move, saying "there was completely no truth in it".
The group, present in the United Kingdom for 100 years with businesses ranging from tea to steel, has its headquarters in Mumbai.
The report quoted "a piece of promotional literature from the brokers, Collins Stewart," as mentioning that Mango Tree would invest in "India-centric pre-IPO deals." Queries made by PTI to the London-based brokerage firm were unanswered.
There has been a rush of India-focused IPOs on London Stock Market's AIM division in the past one year by companies promising to invest the proceeds in various fast-growing sectors in the South Asian country. Such companies include India Hospitality Corp, Ishaan Real Estate, West Pioneer Properties, Naya Bharat Properties, Evolvence India and DEV Property Development.
The literature mentioned that Mango Tree would "access opportunities too small for the Tata Group", which would in turn own a 26 per cent stake in the venture, the report said.
"Investors will make their money when the companies are sold, either in stock-market floats or to the Tata Group itself... The non-executive chairman (of Mango Tree) will be Ishaat Hussain, Tata's finance director," it added.
The Tata Group started its operation in the UK in 1907 with a small liaison office and since then its portfolio has grown into sectors ranging from auto, chemicals, technology, engineering, tea and steel.
However, the listings of the shares of various group companies are limited to Indian and the US bourses and none is listed in the UK.
The group's British expansion has been mostly through acquisitions - the latest being the over $12-billion takeover of the world's sixth biggest steelmaker Corus, formerly British Steel. Currently, Tata group is eyeing to acquire two British brands of US automaker Ford - Jaguar and Land Rover. Corus was previously listed on London Stock Exchange, but was de-listed after acquisition.
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