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Tata Group Stocks Crash After Tata Trust's New Proposal; Tata Chemicals Down Over 3%
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CNBC Awaaz•29-09-2026, 12:23
Tata Group Stocks Crash After Tata Trust's New Proposal; Tata Chemicals Down Over 3%
- •Tata Group stocks, including Tata Chemicals, Tata Motors Passenger Vehicles, and Tata Investment Corporation, fell by 3-4% after a new proposal from Tata Trust.
- •Tata Trust proposed a restructuring of Tata Sons, including the merger of Tata Electronics and Tata Consulting Engineers, both 100% subsidiaries.
- •The proposal suggests Tata Sons should not remain an NBFC or CIC, requiring changes in the company's business and asset nature.
- •The proposal's progress hinges on RBI's decision and the unanimous agreement of Tata Trust members, according to Hetal Dalal of IiAS.
- •Tata Chemicals shares were down 3.2% at ₹620.60, Tata Investment Corporation fell 2.3%, and Tata Motors Passenger Vehicles dropped 2.9%.
Key Questions Answered
Tata Trusts proposed merging Tata Electronics and Tata Consulting Engineers into Tata Sons, while changing its business nature to avoid classification as a Core Investment Company or NBFC and keep it unlisted.
Shares of Tata Chemicals, Tata Motors Passenger Vehicles, and Tata Investment Corporation experienced declines ranging from 3% to 4% following the restructuring announcement.
The implementation of the proposal depends on a decision and a prior no-objection certificate from the Reserve Bank of India, alongside unanimous agreement among Tata Trusts members.
