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Tata Group stocks fall as Tata Trusts weighs restructuring to avoid listing

Reports say Tata Trusts wants to merge TESS and TCE with Tata Sons and seek RBI approval to avoid being classified as a core investment company, which could trigger a stock market listing.

Reported · Written up by our desk · Trade & Tariffs

Most Tata Group stocks fell in Tuesday morning trade, after reports emerged that Tata Trusts has proposed a restructuring intended to sidestep rules that could require a stock market listing.

The proposed plan would merge Tata Electronics Systems Solutions (TESS) and Tata Consulting Engineers (TCE) with Tata Sons, aiming to avoid the Trusts' regulatory classification as a core investment company.

During the morning session, shares of Tata Teleservices, Tata Motors PV, Titan, TCS, Tata Chemicals, Tata Power, and Tata Steel were reported to have dropped by up to 5%.

Tata Trusts, which is described as the largest stakeholder of Tata Sons, has asked the holding company's board to consider the plan and seek a prior no-objection certificate from the RBI, according to LiveMint Markets.

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