Tata Group stocks fell sharply on Friday as investors assessed fresh uncertainty around Tata Sons ownership. SP Group proposed raising at least Rs. 25,000 crore by monetizing part of its Tata Sons stake.
Tata Chemicals led declines, falling 7.8%, while Tata Investment Corporation dropped 3.9% around 9:40 am. TCS declined 3%, Tata Motors Passenger Vehicles fell 2.6%, while Tata Power slipped 1.4% during trading.
The proposal seeks liquidity through two transactions spread across 18 months, involving shares held by investment companies. The structure could use selective capital reduction through the National Company Law Tribunal for Tata Sons shares.
The move does not involve selling stakes in listed Tata companies such as TCS or Tata Power. Investors are instead reassessing Tata Sons' ownership, capital structure and possible listing outcomes after the latest development.
Tata Sons owns significant stakes across automobiles, steel, information technology, aviation and hospitality businesses. SP Group holds roughly 18% of Tata Sons, while Tata Trusts and affiliated trusts control about 66%.
Any major change at Tata Sons can influence sentiment across several listed Tata Group companies. Tata Steel slipped 0.15%, while Tata Elxsi declined 1.09% during the same early trading session.
The development follows the Reserve Bank of India's rejection of Tata Sons' registration request on September 11. Tata Sons remains under the Upper Layer NBFC framework and must address related regulatory requirements.
On Thursday, the Tata Sons board approved N Chandrasekaran's five-year reappointment and initiated steps toward listing. However, Tata Trusts opposed the listing route and called Chandrasekaran's reappointment ‘illegal’ in its statement.
The disagreement has added uncertainty around leadership, governance and the future structure of Tata Sons. Thursday's gains across several Tata stocks have therefore partly reversed as investors digest these ownership developments.
Tata Capital moved against the broader trend, gaining 1.1% during early market activity on Friday. The market reaction centers on Tata Sons' uncertainty rather than fresh operating concerns at individual listed companies.