Tata shares slip as trusts' proposal clouds Tata Sons listing prospects
TCS•Tata group shares fell after Tata Trusts proposed merging two group entities with Tata Sons, a move analysts said dampened listing expectations. Shares fell as much as 3.1%, with Tata Chemicals down 3.1%.
1. Restructuring proposal
Tata group shares fell on Tuesday after Tata Trusts proposed merging two group entities with Tata Sons, the conglomerate’s principal holding company. The proposal is intended to prevent a central-bank-mandated listing, and analysts said it dampened listing expectations.
2. Approval still needed
The proposal would require approval from the Tata Sons board and the Reserve Bank of India, which has maintained its direction for the company to list. Tata Trusts and Tata Sons have also been at odds over the reappointment of chairman N. Chandrasekaran and compliance with the listing mandate.
3. Shares decline
Tata Chemicals fell 3.1%, Tata Investment Corp lost 2.1% and Tata Motors Passenger Vehicles dropped 2%. Trent and Tata Consultancy Services each fell about 1%. An analyst said a listing had been expected to unlock value for Tata group companies holding stakes in Tata Sons, particularly Tata Chemicals and Tata Investment Corp.
