Tata Chemicals Shares Hit 20% Upper Circuit As Tata Sons Listing Expectations Rise

Tata Chemicals shares jumped 20% to Rs 734.90 on Tuesday, hitting the upper circuit on the NSE, as expectations grew that Tata Sons Pvt. Ltd., the holding company of the Tata Group, will have to go public following a Reserve Bank of India decision.

The RBI has rejected Tata Sons' request to deregister as a Core Investment Company, sources told NDTV Profit. The decision means Tata Sons will have to comply with the stock-market listing requirement, bringing the more than century-old holding company closer to a public listing.

Tata Chemicals was among the biggest gainers in the Tata Group, with other group stocks also rising in early trade.

Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay

Tata Sons had sought deregistration after becoming debt-free, arguing that it no longer needed to remain registered as a Core Investment Company, sources said.

The RBI classified Tata Sons as an upper-layer nonbanking financial company in 2022. It has retained the company in its upper-layer NBFC list for 2026-27.

The central bank had required Tata Sons to list by September 2025. Following the latest decision, the company will have to comply with the listing requirement, sources said.

Tata Sons has long opposed a public listing, saying it would increase compliance and disclosure requirements. As the principal holding company of the Tata Group, a listing could have implications for the group's ownership structure and shareholders.

The RBI had earlier rejected industry demands to raise the asset threshold or retain a more complex risk-based method for classifying large NBFCs. It instead adopted a simplified framework based primarily on balance-sheet size.

Under the revised framework, NBFCs with standalone assets of at least Rs 1 lakh crore are subject to enhanced regulatory oversight similar to banks, including an eventual requirement to list on stock exchanges.

Tata Chemicals shares have gained around 10% over the past month, including Tuesday's rise, but remain down around 25% over the past year.

The company has a market capitalisation of Rs 18,722 crore. Its shares have traded between Rs 580.30 and Rs 1,026.70 apiece on the NSE over the past 52 weeks.

On the BSE, Tata Chemicals also gained 20% to trade at around Rs 734 apiece at 9:44 a.m. Tuesday.

Also Read: Pranav Constructions IPO Listing Today: Check Expected Listing Gain Based On Latest GMP

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.