Tata Chemicals shares: The share price of Tata Chemicals fell 10% on Monday. Last week, the stock surged 36% on reports of Tata Sons’ potential public sale.
Tata Chemicals’ shares fell more than 10% today (March 11). This comes after it was revealed that Tata Sons does not plan to do an initial public offering (IPO) in the foreseeable future. Tata Chemicals’ stock surged 36% last week following reports of an IPO. However, it has recently been revealed that the company is exploring alternative options to comply with Reserve Bank of India (RBI) regulations rather than seeking an IPO.
At 9:26 am, Tata Chemicals was priced at ₹1,207.45 on the NSE, reflecting an 8% decrease from the previous closing price. Over the past month, the stock has seen a significant increase of 27%.
Is Tata Sons considering an IPO?
Tata Sons must adhere to a rigorous regulatory framework, compelling it to go public within three years of notification. This obligation stems from its registration as a “credit information company” with the RBI and its classification as an “upper layer” NBFC.
Reports suggest that Tata Sons is unlikely to pursue an IPO, as the conglomerate explores different avenues, such as potentially separating Tata Capital, to meet RBI regulations. If the IPO does not come to fruition, Tata Chemicals stands to miss out on potential value, as it is anticipated to be the primary beneficiary of the public offering.
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Before Holdco discounts and optionalities were taken out, Spark calculated that Tata Sons‘ market capitalization was approximately ₹8 lakh crore.
