Tata stocks slip after Trusts propose move to prevent holding company listing

Sept 29 : Shares of Tata group companies fell on Tuesday after Tata Trusts proposed a restructuring of the holding company in a bid to sidestep a central bank requirement for the conglomerate to list its shares.

Tata Motors Passenger Vehicles dropped 2.8 per cent and Tata Investment lost 2.4 per cent by 9:43 a.m. IST in Mumbai.

Tata Trusts on Monday proposed merging two group companies with Tata Sons, the holding company of the salt-to-software conglomerate that owns significant stakes in listed firms including TCS, Tata Motors PV, Tata Steel and Trent.

The proposal follows a rift between the Trusts and Tata Sons, in which it holds a 66 per cent stake.

Expectations for a listing had heightened after the Indian central bank rejected the holding company's bid to exit its non-bank finance company status.