Tata Group stocks: TCS, Tata Motors, Tata Chemicals rally up to 20% as RBI rejects Tata Sons’ CoR surrender; Tata Sons IPO back in spotlight

Tata Group stocks, including Tata Consultancy Services (TCS), Tata Motors, Tata Steel and Titan Company, among others, rallied up to 20% on Tuesday, September 15, after the Reserve Bank of India (RBI) rejected Tata Sons’ request to voluntarily surrender its Certificate of Registration (CoR).

IT major TCS rallied over 5%, while Tata Motors CV gained 6% to Rs 320 on the NSE. Tata Chemicals was locked in a 20% upper circuit, while Tata Investment Corp gained up to 10%.

The RBI’s September 11 decision means Tata Sons will have to comply with regulatory requirements applicable to NBFC–Upper Layer (UL) entities, bringing the potential listing of the holding company back into focus.


ALSO READ: RBI files caveat in Bombay High Court in Tata Sons listing matter

Other Tata Group stocks likely to remain in focus include Tata Motors PV, The Indian Hotels Company, Tata Communications, Trent, Tata Elxsi, Tata Technologies, Tata Capital, Titan Company, The Tata Power Company, Tata Consumer Products, Voltas, Nelco and Tejas Networks.

Notably, Tata Sons had sought to surrender its CoR and be classified as an unregistered Core Investment Company (CIC).

In a letter dated September 11, 2026, the RBI said it could not accede to Tata Sons’ request after considering the company’s application dated March 28, 2024, and subsequent correspondence. It advised Tata Sons to take necessary action to ensure full compliance with all applicable guidelines and instructions for NBFC–Upper Layer entities.

The development comes amid other key developments at Tata Sons, including a potential boardroom tussle over Chairman N Chandrasekaran’s reappointment and estimates that value the holding company’s potential IPO at Rs 9-12.5 lakh crore.

RBI rejects Tata Sons’ request

The RBI has rejected Tata Sons’ application for voluntary surrender of its Certificate of Registration, which would have allowed the company to be classified as an unregistered Core Investment Company.

The decision brings the potential public listing of the holding company of India’s largest business conglomerate back into focus. Tata Sons has interests across sectors and countries through its listed and unlisted investments.

The RBI, in its September 11 letter, said that after considering Tata Sons’ application dated March 28, 2024, and subsequent correspondence, it could not accede to the request for voluntary surrender of the CoR.

The central bank has advised Tata Sons to take necessary action to ensure full compliance with all guidelines and instructions applicable to NBFC–Upper Layer entities.

ALSO READ: ET Exclusive: RBI blocks Tata Sons' bid to stay private, forcing listing of Rs 2.01 lakh crore giant

Chandrasekaran reappointment sets up boardroom showdown

Following these developments, the nomination and remuneration committee (NRC) of the Tata Sons board will oppose Chairman N Chandrasekaran’s decision not to seek reappointment when his current term ends in February 2027, and ask him to reconsider the move.

The development could set the stage for a clash between the key committee and Tata Sons’ majority shareholder, Tata Trusts, which had issued a statement accepting Chandrasekaran’s decision.

The matter is expected to come up at the Tata Sons board meeting scheduled for September 17.

ALSO READ: Tata Sons NRC may ask chairman Chandrasekaran to reconsider decision to leave

Tata Sons IPO valuation pegged at Rs 9-12.5 lakh crore

Tata Sons could be valued at Rs 9-12.5 lakh crore in a potential initial public offering (IPO), according to multiple investment bankers and valuation experts cited by ET.

ALSO READ: Tata Sons may be valued at steep discount of up to ₹12.5 lakh crore in IPO

The potential valuation would represent a steep discount to an underlying portfolio valued at Rs 15-16 lakh crore. The valuation will depend on how investors price Tata Sons’ listed stakes and unlisted businesses, while applying the traditional discount associated with a holding company structure.

An analysis by the equity capital markets head of a top domestic bank puts Tata Sons’ underlying value at Rs 15-16 lakh crore, comprising about Rs 12 lakh crore from listed holdings and Rs 4 lakh crore from unlisted assets.

The analysis applies a 41-45% holding company discount to the listed portfolio and about 15% to unlisted assets, along with a further 10-15% discount to fair value for the IPO.

This article has been written by Kumar Gaurav, who is not a SEBI-registered Research Analyst or an Investment Adviser. Gaurav and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.