Tata Group shares fell sharply on September 18. Tata Trusts, the majority shareholder of Tata Sons, officially opposed a potential public listing.
The news reversed gains from the previous day. The market reaction wiped ₹40,000 crore from the group's combined market capitalization.
This decline represents a loss of approximately $3.2 billion. Tata Motors Passenger Vehicles shares dropped by as much as 3.35%.
The board considered the listing to comply with Reserve Bank of India regulations for upper-layer non-bank financial companies. Tata Trusts stated that a public listing would destroy the character of the holding company.