Tata Group stocks surged up to 13.5% in Thursday’s session on September 17 after the Tata Sons board approved a fresh five-year term for N. Chandrasekaran as executive chairman and set the process in motion for a potential listing of the group’s holding company.
“The Board received from Tata Trusts their unanimous resolution dated July 28, 2025, expressing their appreciation of the Chairman of Tata Sons, Mr. N. Chandrasekaran (Chandra), for his stewardship of the Group from 2017 onwards. In recognition of these efforts, the Tata Trusts resolved that he be re-appointed as Executive Chairman for a further term of five years upon the expiry of his current term,” the Group said in an exchange filing.
Chandrasekaran had earlier indicated on August 12 that he would not pursue another term after his current stint as Tata Sons executive chairman concludes on February 20, 2027.
“At the meeting of the Board on September 17, 2026, Chandra acceded to the Board’s request to re-consider his decision. The Board thereafter resolved by a majority vote to re-appoint him as Executive Chairman for a further term of five years upon the expiry of his current tenure,” it added.
The Board also resolved to initiate steps to comply with the applicable RBI Guidelines and will seek guidance from RBI, Tata Trusts and other stakeholders on applicable compliance requirements.
Noel Tata, Chairman of Tata Trusts, which along with affiliated trusts controls around 66% of Tata Sons, is the head of the trust group. The Shapoorji Pallonji Group, which holds roughly 18% of Tata Sons and was founded by Noel Tata’s father-in-law, has favoured a listing. As per media reports, he was not in favour of the appointment.
Chandrasekaran has headed Tata Sons since 2017, when he succeeded Ratan Tata following the board’s ouster of Cyrus Mistry. He was subsequently reappointed for a second term in 2022.
Tata Group Stocks
Tata Chemicals rose 13.5% to ₹831.00 per share on BSE. Tata Teleservices advanced 7.3% to ₹38.14 while Tata Investment is up 7.3% to ₹732.10.
Tata Motors Passenger Vehicles jumped as much as 6.2% to the day’s high of ₹319.70 per share on BSE.
Tata Steel advanced 3.5% to ₹189.40, while Tata Motors rose 3% to ₹436.90.
TCS was up 3.2%, whereas Tata Power added 2.5%, Indian Hotels rose 2.2%, and Tata Elxsi gained 1%.
Tata Sons Listing
The listing question has been hanging over Tata Sons since the RBI’s September 2022 decision to classify the company as an upper-layer non-banking financial company.
Under the regulatory framework, the classification required Tata Sons to list within three years. The company later repaid its debt and applied to surrender its Core Investment Company registration, seeking to retain its privately held status.
That route was effectively shut down after the Reserve Bank of India rejected Tata Sons’ application on September 11, 2026, and directed the group holding company to proceed with an immediate listing. The RBI’s decision was reiterated on September 12, when it formally rejected the request to surrender the Core Investment Company registration, effectively closing Tata Sons’ effort to avoid a mandatory stock-market listing.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.