TCS soaring m-cap: Tata Sons to benefit as IT firm enters $100-bn club

Some of the immediate financial needs that face the company include repaying the debt of Tata Teleservices before it is merged with Bharti Airtel

Tata Sons will be a big beneficiary of Tata Consultancy Services’ entry into the $100-billion market capitalisation club. Not only does it allow the holding firm to unlock benefits in terms of valuation if it decides in favour of diluting even a small portion of the 71.89 per cent it holds in its flagship firm, it also improves the company's standing when it goes for overseas borrowing. The soaring valuations of the cash-cow also strengthen the risk appetite of Tata Sons to grow the business.

Chandresh Ruparel, managing director at investment banking firm Rothschild India, said the strong valuation of