Tata Chemicals, Tata Investment shares fall 5-10% on Tata Sons listing updates

Stocks like Tata Chemicals, Rallis, Tata Investment rallied significantly last week after a note from Spark Capital said that Tata Sons may have to list by September 2025.

Based on RBI's norms, an upper tier NBFC has to list within three years of being notified and Tata Sons was informed of the same in September 2022.

Tata Chemicals shares rallied over 40% last week as Spark Capital's note mentioned that the most realistic way to play the potential value unlocking theme post Tata Sons' listing is via Tata Chemicals, which owns a 3% stake in Tata Sons.

Tata Sons' ownership in Tata Chemicals amounts to nearly 80% of the company's overall market capitalisation, while for the other three companies, that figure lies between 16% to 21%, according to Spark Capital.

Shares of Tata Chemicals were underperformers in the first two months of 2024, declining 7% and 9% respectively, which Spark Capital attributes to the commodity nature of Soda Ash and industry-wide headwinds faced due to falling realisations.

Shares of Tata Chemicals are trading 8.6% lower at ₹1,201, while those of Rallis, which also surged over 12% last Thursday are down 3% at ₹277.3. Shares of Tata Investment are locked in a 5% lower circuit.