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Tata Chemicals shares fall 10% after last week's rally. Here's why there has been a U-turn
Tata Chemicals share price declined 10% on Monday. The stock had rallied 36% last week on reports of a likely public offering from Tata Sons.
Tata Chemicals share price: Shares of Tata Chemicals plunged over 10 per cent today (March 11). This comes after it was reported that Tata Sons is not eyeing an initial public offering (IPO_ in the near future. Tata Chemicals stock rallied 36 per cent last week after reports of IPO. But it has now emerged that the conglomerate is considering various avenues to adhere to the Reserve Bank of India's (RBI) norms and not looking for an IPO.
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At 9.26 am, Tata Chemicals traded at ₹1,207.45 on the NSE, down 8 per cent from the previous close. In the past one month, the stock has jumped 27 per cent.
Is Tata Sons going for an IPO?
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Tata Sons is required to follow a strict regulatory structure and list on the public market within three years of being notified as it is registered as a "credit information company" with the RBI and classified as an "upper layer" NBFC.
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Reports claimed that Tata Sons' IPO is unlikely as the conglomerate is eyeing various options, including potential separation of Tata Capital in order to ensure RBI compliance. In case the IPO does not materialise, Tata Chemicals will lose on the potential value as it is expected to be the biggest beneficiary of the public issue.
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Tata Sons' market capitalisation was earlier estimated to be around ₹8 lakh crore by Spark, excluding holdco discounts and optionalities.
