Which Tata Group Stocks Surged Upto 8% Ahead Of Tata Sons Board Meet?

While the highly-anticipated Tata Sons board meet is underway at the Bombay House, several Tata Group stocks have rallied, including Tejas Networks Ltd which surged 8% to hit an intra-day high of Rs 511.45 per share on Tuesday, May 26.

The shares of Tata Chemicals Ltd rose as much as 7% to hit an intra-day high of Rs 819 per share, while the Tata Technologies Ltd stock price surged 4.34% to hit an intra-day high of Rs 706.70 apiece.

Tata Sons Board Meet: What Hangs In The Balance?

The crucial Tata Sons board meeting, which has all six board members – chairman N Chandrasekaran, Tata Trusts nominee directors Noel Tata and Venu Srinivasan, executive director and chief financial officer Saurabh Agrawal, and independent directors Harish Manwani, and Anita George started close to 10:30 am at the Bombay House.

The meeting is expected to deliberate on two mega points - whether the group’s holding company will remain private or head for public listing, and how can it mitigate losses from venture such as Air India and Tata Digital.

Meanwhile, the Tata Sons IPO concerns has emerged as the biggest discussion point within the Tata's top echelon.

Tata Sons, which was classified as an upper-layer non-banking financial company (NBFC) in September 2022, led to a requirement to list by September 2025. The company subsequently applied to the Reserve Bank of India (RBI) for deregistration and exemption from the listing mandate after repaying more than Rs 20,000 crore of standalone debt.

Also Read: Tejas Networks Stock Zooms 7% Ahead of Crucial Tata Sons Board Meeting

However, the RBI’s recent regulatory clarification has significantly narrowed Tata Sons’ argument. The regulator has adopted a “look-through” approach that considers indirect access to public funds through group companies such as TCS, Tata Steel, Tata Motors and Tata Power, all of which raise capital from public markets.

Tata Sons, which sits atop a corporate structure with assets of about Rs 1.75 lakh crore, remains classified as an upper-layer NBFC, strengthening the possibility of a listing.