Tata Group stocks fall amid IPO uncertainty, m-cap plunged by Rs 27,385 cr | Stock Market Today- QHN

Tata Sons chairman N Chandrasekaran

Tata Group stocks on Monday fell amid uncertainty regarding the initial public offering (IPO) of its holding company Tata Sons.

Barring three Tata firms, all other group company stocks fell, and the group’s market capitalisation (m-cap) plunged by Rs 27,385 crore.

Tata Chemicals fell the most, down 10.6 per cent during Monday’s session. Other group stocks that went down steeply were Automobile Corporation of Goa, which fell 8.3 per cent, and Rallis India, which fell 5.1 per cent.

Tata Investment Corporation and Artson Engineering fell 5 per cent each.

Analysts said group stocks, with direct or indirect exposure to Tata Sons’ equity, had rallied in the past few weeks in anticipation of an IPO.

However, news reports suggest that the conglomerate may not be keen on listing, triggered profit taking. 

Tata Sons is registered as a “core investment company (CIC) with the Reserve Bank of India (RBI). It has been classified as an “upper-layer” non-banking financial company (NBFC). This classification requires the company to follow a strict regulatory structure and list on the public market by September 2025. 

“The group’s stocks are trading at slightly elevated valuations, and moreover, there is a correction in small and midcap stocks,” said Chokkalingam G, co-founder of Equinomcs.

First Published: Mar 11 2024 | 9:58 PM IST