Several Tata stocks fall up to 10% as Tata Sons IPO looks unlikely- Grow Mudra

Several Tata stocks fall up to 10% as Tata Sons IPO looks unlikely

11 Mar , 2024 By : Debdeep Gupta

Several Tata stocks fell up to 10% as Tata Sons IPO looks unlikely, After claiming last week that Tata Sons' listing was imminent, reports now say an IPO is improbable shortly and the company is exploring other options to adhere to RBI norms

Shares of several Tata group firms fell up to 10 percent on March 11 amid reports that Tata Sons was unlikely to go for an initial public offering shortly. In the week gone by, the IPO buzz led to several group stocks surging up to 36 percent.

The four best-performing stocks in the BSE500 pack were all from the salt-to-software conglomerate but as reports went from Tata Sons' "imminent" listing to "improbable listing", investors booked profits in several stocks.

Tata Sons is registered as a CIC with the Reserve Bank of India and has been classified as an "upper layer" NBFC, which requires the company to list on exchanges within three years of being notified.

The RBI issued a notification to this effect for Tata Sons in September 2023, which means Tata Sons has to list by September 2025.

The parent company of several Tata group firms, however, is reportedly considering various avenues to adhere to RBI norms.

Last week, Spark Capital identified Tata Chemicals as the only potential play in the IPO and the stock had surged 36 percent. The stock, however, plunged over 10 percent in early deals after reports said an IPO was unlikely.

Tata Investment Corp stock fell to 5 percent lower circuit and Tata Technologies and Tata Consumer Products stock fell around 3 percent each. Tata Teleservices fell 2 percent, and Tata Steel and Tata Power Company stocks were down over a percent. While Indian Hotels Company stock fell nearly a percent, Tata Motors shares were also down half a percent.

If launched, Tata Sons' IPO was estimated to be the biggest ever, even supassing Life Insurance Corporation of India’s Rs 21,000 crore offer. Spark’s report said Tata Sons could be valued at Rs 7-8 lakh crore through the IPO, based on the current market capitalisation of group companies.