Tata stocks fall after Tata Sons plan to stay private
Tata Group shares like Tata Chemicals and Tata Motors PV dropped by 3.75% and 3.05%, respectively, on Tuesday, right after news broke about a major restructuring plan for their parent company, Tata Sons.
The move is meant to keep Tata Sons private and off the stock market.
Proposed merger could reclassify Tata Sons
The plan is to merge two group firms, Tata Electronics Systems Solutions and Tata Consulting Engineers, into Tata Sons.
If this goes through, it helps reclassify Tata Sons so it won't be treated as a financial company by regulators. That could potentially remove the regulatory requirement at the center of expectations around a Tata Sons listing.
The proposal still needs to be considered by the Tata Sons board and requires a prior no-objection from the RBI, along with other approvals.