Tata group stocks slip after Trusts' proposal dims Tata Sons listing hopes
Shares of Tata group companies fell after Tata Trusts proposed a restructuring of Tata Sons to sidestep an RBI listing requirement.
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04:06:08 AM UTC
SquawkNews
* Most Tata Group stocks trade lower after Tata Trusts proposed merging Tata Electronics Systems and Tata Consulting Engineers with Tata Sons to sidestep RBI listing requirement * Tata Chemicals, Tata Motors PV and Tata Investment shares drop between 2% and 4%, lead decline among group firms * Merger would give Tata Sons substantial operating business, shifting it from primarily a holding company; proposal requires Tata Sons board approval before being submitted to RBI for its nod * YTD, TINV down 9.6%, TTCH declines around 17% and TAMO down about 26% (Reporting by Urvi Dugar in Bengaluru) ((mailto:UrviManoj.Dugar@thomsonreuters.com;)
04:20:40 AM UTC
SquawkNews
(Adds details paragraph 2 onwards) Sept 29 (Reuters) — Shares of Tata group companies fell on Tuesday after Tata Trusts proposed a restructuring of the holding company in a bid to sidestep a central bank requirement for the conglomerate to list its shares. Tata Motors Passenger Vehicles dropped 2.8% and Tata Investment lost 2.4% by 9:43 a.m. IST in Mumbai. Tata Trusts on Monday proposed merging two group companies with Tata Sons, the holding company of the salt-to-software conglomerate that owns significant stakes in listed firms including TCS, Tata Motors PV, Tata Steel and Trent. The proposal follows a rift between the Trusts and Tata Sons, in which it holds a 66% stake. Expectations for a listing had heightened after the Indian central bank rejected the holding company's bid to exit its non-bank finance company status. (Reporting by Kashish Tandon in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala) ((Kashish.Tandon@thomsonreuters.com; 8800437922;)