Shares of Tata Chemicals and Tata Investment Corporation surged up to 12% and 8.5% respectively on Monday, despite overall bearish sentiment in markets. According to reports from The Economic Times, Tata Chemicals shares rallied more than 12% to trade at around ₹774 apiece, marking the highest level in more than two months. Tata Investment Corp shares gained over 8.5% to a seven-week high of ₹722 apiece in morning trading hours. Notably, both companies hold stakes in Tata Sons, which is at the center of the current market buzz.
The rally comes amid growing buzz around the much-awaited initial public offering (IPO) of Tata Sons, which has now received backing by some key trustees of the Tata Trusts board. As reported by The Economic Times, Tata Trusts trustee and former Defence Secretary Vijay Singh has called for the listing of Tata Sons on stock exchanges through its IPO, after TVS Group's Venu Srinivasan publicly supported the move. Shapoorji Pallonji Mistry also backed the case for listing Tata Sons, calling it a "necessary revolution" rather than a regulatory compulsion.
According to The Economic Times, Mistry stated that a public listing would strengthen governance standards, improve transparency and enhance accountability within the Tata ecosystem. He dismissed concerns that the IPO could dilute the role of Tata Trusts, stating there is no evidence to suggest that a public listing would harm the interests of beneficiaries or weaken the trusts' ability to fulfil their objectives. Tata Trusts Vice Chairman Srinivasan told ET that such a move would allow Shapoorji Pallonji (SP) Group to monetise its 18.37% stake in Tata Sons, a long-standing demand of the minority shareholder seeking to pay off debt.
The current push for listing comes despite a resolution passed by Tata Trusts less than a year ago, which aimed to retain Tata Sons as an unlisted private entity. As reported by The Economic Times, Tata Trusts under the chairmanship of Noel Tata had asked Tata Sons Chairman N Chandrasekaran to explore all options to avoid a listing, while also initiating discussions on a potential exit for the SP Group. The Reserve Bank of India is expected to issue a revised circular on upper-layer NBFCs soon, with officials suggesting that Tata Sons may not receive the RBI exemption it has sought from the upper-layer classification to avoid listing.
The broader unease within the group has also surfaced in governance matters, with an early move to consider a third term for Chandrasekaran being deferred after objections were raised over the performance of Chandrasekaran and losses at Air India and Tata Digital at a board meeting by Noel Tata on February 24, 2026. According to The Economic Times, Tata Trusts has majority control of Tata Sons with a stake of about 66%, while the broader trusts appear increasingly divided with one section seeing listing as inevitable and aligned with shareholder interests, while another remains opposed to preserve control and legacy considerations.
