Shares of Tata Motors Passenger Vehicles fell by as much as 2.8% on September 29 after Tata Trusts proposed restructuring Tata Sons. The proposal is seen as an effort to bypass a central bank requirement for Tata Sons to list on the stock exchange. It would merge Tata Electronics Systems Solutions and Tata Consulting Engineers into Tata Sons.
The restructuring could change Tata Sons’ classification from a holding company to a holding-operating company, potentially exempting it from the listing mandate. The proposal has added to investor uncertainty and weighed on shares of various Tata Group companies.
The proposal still requires approval from the Reserve Bank of India and the Tata Sons board.