The renewed buzz around Tata Sons’ much-awaited IPO sparked a sharp rally in Tata Group stocks on Tuesday, adding more than Rs 17,200 crore in less than an hour from opening to the total market capitalisation of Tata Chemicals, Tata Investment Corp, Tata Motors PV, Tata Elxsi and Tata Tech, whose shares rallied up to 20%.
Tata Sons inched closer to its much-awaited IPO after the Reserve Bank of India (RBI) rejected the company’s application for voluntary surrender of its Certificate of Registration (CoR) to be classified as an unregistered Core Investment Company (CIC), paving the way for a public listing of the holding company of India’s largest business conglomerate with wide ranging interests across sectors and countries.
The RBI has advised Tata Sons to take necessary action to ensure full compliance with all guidelines and instructions applicable to NBFC–Upper Layer entities. This closes a key regulatory route that Tata Sons had pursued to avoid a public listing.
Also read | ET Exclusive: RBI blocks Tata Sons' bid to stay private, forcing listing of Rs 2.01 lakh crore giant
Tata Trusts, which controls 66% of Tata Sons through the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust, passed a resolution in July 2025 seeking to keep the holding company privately owned. The Shapoorji Pallonji Group, Tata Sons’ largest minority shareholder with an 18.37% stake, views a listing as the most practical way to unlock value.
After the RBI directive, Tata Group stocks which hold a stake in Tata Sons massively rallied on Tuesday. Tata Chemicals shares soared 20% to hit the upper circuit, adding nearly Rs 3,120 crore to its market capitalisation. The company holds a 2.53% stake in Tata Sons, which translates to a stake value of Rs 30,052.2 crore.
Tata Investment Corporation, which holds stake worth more than Rs 950 crore in Tata Sons, saw its share price jump more than 15% and add Rs 5,039 crore to its market capitalisation. The biggest market cap gain among the five stocks was recorded by Tata Motors PV, whose 6% jump in share price added over Rs 7,016 crore to investor wealth.
Tata Elxsi and Tata Tech shares gained around 4% each. The total market capitalisation of these five companies jumped by nearly Rs 17,214 crore less than an hour from opening to Rs 2.29 lakh crore on Tuesday morning.
Also read | Tata Group stocks: TCS, Tata Motors, Tata Chemicals rally up to 20% as RBI rejects Tata Sons’ CoR surrender; Tata Sons IPO back in spotlight
While the optimism remains high, multiple investment bankers and valuation experts told ET that Tata Sons could be valued at Rs 9-12.5 lakh crore in a potential initial public offering (IPO), marking a steep discount on an underlying portfolio worth Rs 15-16 lakh crore.
An analysis by the equity capital markets head of a top domestic bank puts Tata Sons' underlying value at a 41-45% holding company discount to the listed portfolio and about 15% to unlisted assets, with a further 10-15% discount to fair value for the IPO. "A conglomerate this size, you can't value the parent directly," said Vimal Taparia, partner at Morphis Management Services, a boutique firm specialising in IPO and valuation advisory.
Also read |Tata Sons may be valued at steep discount of up to ₹12.5 lakh crore in IPO
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
