Tata Sons to infuse additional Rs 1,250 crore in financial services arm

Tata Sons had earlier invested Rs 785 crore in 2016-17 in the financial services business as equity

Tata Sons, the holding company of Tata group, is investing an additional Rs 1,250 crore as equity in its financial services arm, so that the company can meet its liquidity norms. The additional equity will also help Tata Capital Financial Services to boost its net worth to Rs 5,345 crore by this month-end, say bankers.

The investment is expected to be funded by Tata Sons by raising funds via a combination of existing cash and bank balances, dividend income, and borrowings. “The company is in talks to raise around Rs 1,000 crore from banks,” says a lender.

According to a