RBI Decision Puts Tata Sons IPO Back On Radar As Tata Group Stocks Rally Up To 20%

Tata Group stocks, including Tata Consultancy Services (TCS), Tata Motors, Tata Steel, Tata Chemicals and Titan Company, moved higher on 15 September 2026 after the Reserve Bank of India (RBI) rejected Tata Sons' request to voluntarily surrender its Certificate of Registration (CoR).

The decision puts the potential listing of the Tata Group holding company back in focus and comes alongside developments around its board leadership.

At 11:11 am on Tuesday on the National Stock Exchange, TCS shares were trading at ₹2,315.90, up 5.23% from the previous close of ₹2,200.80. Tata Motors shares were at ₹431.00, down 0.82% from the previous close of ₹434.55. Tata Steel shares were trading at ₹184.19, up by 0.65% from the previous close of ₹183. Titan shares stood at ₹4,891.00, down 2.37% from ₹5,009.50. Tata Chemicals shares surged 19.99% to ₹734.90 from ₹612.45.

RBI Decision Brings Tata Sons Listing Back Into Focus

The RBI's decision on 11 September 2026 requires Tata Sons to comply with the regulatory framework applicable to non-banking financial companies-upper layer (NBFC-UL) entities. The central bank rejected the company's request to surrender its CoR and become an unregistered Core Investment Company (CIC).

Tata Sons had submitted its application on 28 March 2024, followed by further correspondence with the RBI.

The decision has brought the potential public listing of Tata Sons back into focus. Tata Sons has investments across listed and unlisted businesses spanning several sectors and countries.

Other Tata Group stocks that could remain in focus include Tata Motors PV, The Indian Hotels Company, Tata Communications, Trent, Tata Elxsi, Tata Technologies, Tata Capital, Tata Power, Tata Consumer Products, Voltas, Nelco and Tejas Networks.

Tata Sons Board Faces Leadership Tussle Ahead Of September Meeting

The Tata Sons board is also facing a separate issue concerning Chairman N Chandrasekaran's reappointment. The Nomination and Remuneration Committee (NRC) plans to oppose his decision not to seek another term when his current tenure ends in February 2027.

The committee is expected to ask Chandrasekaran to reconsider his decision. The development could lead to differences between the committee and Tata Trusts, Tata Sons' majority shareholder, which has accepted his decision.

The matter is expected to be discussed at the Tata Sons board meeting scheduled for 17 September 2026.

Tata Sons IPO Valuation Could Reach ₹12.5 Lakh Crore

Tata Sons could command a valuation of ₹9-12.5 lakh crore in a potential initial public offering (IPO).

This valuation is below the anticipated underlying portfolio value of ₹15-16 lakh crore. The final valuation will depend on how investors value Tata Sons’ listed holdings and unlisted operations, and the discount usually applied to a holding company structure.

An analysis estimated ₹12 lakh crore of the underlying value from listed holdings and ₹4 lakh crore from unlisted assets. It applied a 41-45% holding company discount to the listed portfolio and around 15% to unlisted assets, followed by another 10-15% discount to fair value for the potential IPO.

Tata Chemicals’ Stake In Tata Sons Could Be Worth ₹15,000 Crore

Tata Chemicals holds a 2.5% stake in Tata Sons. Based on the rough-cut valuation range, the holding could have a hypothetical value of around ₹10,000-15,000 crore.

Tata Trusts, the biggest shareholder in Tata Sons, led by Sir Dorabji Tata Trust and Sir Ratan Tata Trust, hold a 66% stake. To meet the minimum public shareholding (MPS) requirement, experts believe an offer for sale (OFS) by existing shareholders could be the likely route, rather than issuing fresh shares.

The Shapoorji Pallonji (SP) group, which holds about an 18.4% stake in Tata Sons, might be a possible player in such an OFS. The group has been pushing for a listing of Tata Sons, which could also help reduce its debt burden. An OFS by current shareholders could enable Tata Sons to achieve the compliance requirement without eroding the power of the Tata Trusts significantly.

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