TCS, Tata Chemicals, other group stocks zoom up to 14% on Tata Sons IPO nod, N Chandra’s term extension

Tata Group stocks rallied sharply, gaining up to 14% on Thursday afternoon after Tata Sons approved a fresh five-year extension for Chairman N Chandrasekaran’s tenure and set the ball rolling for the much-awaited IPO of the group holding company.

The Tata Sons board approved the extension as the group holding company prepares for an IPO that it has long resisted, people familiar with the matter told The Economic Times. Tata Trusts, which together hold a majority stake in the company, may, however, challenge Chandrasekaran’s reappointment as chairman, the sources further said.

Why Tata Group stocks are rallying?

Tata Chemicals, which holds a 2.53% stake in Tata Sons, saw its share price jump 14% to Rs 832 apiece. Tata Investment Corporation, which holds a significant stake in Tata Sons, rose 6% to Rs 720.

Shares of TCS, where Chandrasekaran earlier served as the CEO, rose over 3%, while those of Tata Motors PV, Tata Elxsi, Tata Tech, Tata Steel and others also recorded sharp gains.

RBI rejects Tata Sons' voluntary surrender of CoR

This comes days after the Reserve Bank of India (RBI) rejected the company’s application for voluntary surrender of its Certificate of Registration (CoR) to be classified as an unregistered Core Investment Company (CIC), paving the way for a public listing of the holding company of India’s largest business conglomerate with wide ranging interests across sectors and countries.

Tata Trusts, which controls 66% of Tata Sons through the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust, passed a resolution in July 2025 seeking to keep the holding company privately owned. The Shapoorji Pallonji Group, Tata Sons’ largest minority shareholder with an 18.37% stake, views a listing as the most practical way to unlock value.

Chandrasekaran resigned in August as Tata Sons Chairman after his reappointment decision was deferred by the Tata Sons board. Tata raised reservations about the performance of the new businesses. Noel Tata was also in favour of a two-year executive term for Chandrasekaran, in line with the group retirement age of 65 for executive roles, ET reported earlier.

N Chandrasekaran took over Tata Sons in 2017 after leading TCS. He became the first professional manager from outside the Tata family to head the holding company after Ratan Tata.