Tata Chemicals, Tata Investment Fall Amid Uncertainty Over Tata Sons' IPO Plans

Several Tata Group stocks sliped on Monday amid reports that Tata Sons may not be making its debut in the primary market in the near future.

Fourteen out of 19 listed group companies of the salt-to-software conglomerate slipped during early trade.

Tata Chemicals Ltd. tumbled 9.88% by 10:17 a.m., after having risen 22.6% in the past one week and 21.45% in the last 12 months.

Tata Investments Corp. was locked in the 5% lower circuit by early noon after having risen by almost 10% during the week and 363% in the past 12 months.

Tata Consultancy Services Ltd. traded 0.1% higher, while Trent Ltd. rose the most among the Tata Group basket with an over 5% rise in its share price.

The combined market cap of the listed Tata Group companies has declined by Rs 10,954.37 crore to Rs 30.13 lakh crore. It has fallen to Rs 29.88 lakh crore so far in the day.

Spark Capital in a note last week stated that Tata Sons will have to list on stock exchanges by September 2025, as it was classified as NBFC-Upper Layer in October 2021. The investment bank cited a Reserve Bank of India regulation that requires companies falling under this category to mandatorily list within three years of getting that tag.

The note claimed that Tata Sons could potentially fetch a value of Rs 7–8 lakh crore at current market capitalisations of Tata Group companies. The company could potentially fetch a valuation of Rs 11 lakh crore with expected IPO size around Rs 55,000 crore, it said.

Following the development, reports suggested that Tata Sons could explore options to receive an exemption from the RBI-mandated listing.

An email to Tata Sons in regard did not elicit a response at the time of writing this report.