Tata Group stocks surge after RBI decision, Tata Chemicals hits 20% upper circuit
RBI's refusal to let Tata Sons surrender its registration certificate revives IPO speculation, sending Tata Group shares sharply higher.
Shares of several Tata Group companies surged on Tuesday after a key decision by the Reserve Bank of India. TCS, Tata Motors, Tata Chemicals, Tata Investment Corporation, Tata Steel and Titan saw heavy buying. The rally is being attributed mainly to an RBI decision concerning Tata Sons.
The RBI has rejected Tata Sons' request to voluntarily surrender its registration certificate. Following the decision, market talk of a possible Tata Sons IPO has intensified again, with the effect visible directly in Tata Group stocks.
On Tuesday, Tata Chemicals shares hit a 20 percent upper circuit, while Tata Investment Corporation shares gained around 10 percent. TCS shares rose more than 5 percent. Tata Motors, which retains the commercial vehicle business, jumped about 6 percent to around Rs 320.
Investors are also tracking other Tata Group stocks including Tata Motors PV, Indian Hotels, Tata Communications, Trent, Tata Elxsi, Tata Technologies, Titan, Tata Power, Tata Consumer Products, Voltas, Nelco and Tejas Networks.
Tata Sons had sought RBI permission to cancel its registration so that it could be classified as an unregistered Core Investment Company, or UCIC. The company had filed this application in March 2024. But on September 11, 2026, the RBI declined the request. The central bank has directed Tata Sons to take the necessary steps to fully comply with all rules and guidelines applicable to NBFC-Upper Layer companies. This has once again made regulatory compliance and a possible listing a key issue for Tata Sons.
Following the RBI decision, the market is discussing a possible Tata Sons IPO the most. According to estimates from investment bankers and valuation experts, a potential Tata Sons IPO could be valued between Rs 9 lakh crore and Rs 12.5 lakh crore, though this is not a final figure. Tata Sons' investment portfolio is estimated at around Rs 15 to 16 lakh crore. As a holding company, such firms are typically valued by the market at less than the total value of their assets or investments.
A potential Tata Sons listing is also seen as significant because the company holds stakes in several large listed and unlisted Tata Group companies. Meanwhile, an issue involving the Tata Sons board and chairman N. Chandrasekaran is also under discussion. His current term ends in February 2027, and the board's Nomination and Remuneration Committee may be asked to reconsider the decision to reappoint him. This issue is likely to come up at the Tata Sons board meeting scheduled for September 17.
