Tata Chemicals, Tata Investment, Tata Power stocks rally in backdrop of potential listing of Tata Sons

Shares of Tata Chemicals and Tata Investment Corporation rose as much as 12%and 11%, respectively, on Monday, bucking the trend of a nervous stock market which continues to slide on fears of an escalation in the West Asia war. 

These stocks rose with the rising speculation that Tata Sons, the parent investment holding company and the promoter of all major Tata Group companies, could move in for a potential listing soon. 

These stocks have small stakes in Tata Sons while Tata Sons has substantial stake in some of these subsidiaries – 31.9% in Tata Chemicals, 68.5% in Tata Investments, and 45.2% stake in Tata Power, as of December 31, 2025. 

Tata Chemicals ended Monday up 4.14% or ₹28.4 at ₹718 while Tata Investment Corporation ended up ₹47.8 at ₹713 while Tata Power rose 2.49% or ₹9.95 at ₹409.45. 

The Reserve Bank of India is has proposed to replace the existing methodology to identify the upper layer non-banking financial companies (NBFC-UL) through a specific yardstick of an asset size criteria as ₹1,00,000 crore and above. This could push for a listing of Tata Sons. Tata Sons standalone total asset size is ₹1.75 lakh crore while the consolidated figure is ₹9.70 lakh crore, as of FY25. 

The rally in some of these Tata group subsidiaries comes in the wake of Shapoorji Pallonji Mistry, chairman of the Shapoorji Pallonji (SP) Group, making a clear call for the public listing of Tata Sons. The SP Group owns 18.4% stake in Tata Sons, the unlisted holding company of the $180-billion Tata Group. 

Mistry, in the statement issued on April 10, said “As I have stated earlier, we would like to reiterate that a timely listing of Tata Sons is not merely a regulatory compliance but a necessary evolution.” 

Tata Trusts, the majority shareholder in Tata Sons with a 66% equity holding, wants it to stay private. Tata Trusts feel a listing could go against the need to preserve the group's philanthropic legacy. 

The RBI in its draft amendment to the methodology has said that this was being revised “with a view to adopt a transparent, simple and absolute criteria for identification of NBFC-UL” it said in a statement issued on their website.