Tata Investment Corporation has been grappling with significant losses in recent weeks, marking a stark downturn in its performance. This week alone, the company witnessed a 5% decrease following a staggering 43% decline over the past two weeks, indicating a notably bearish trend in its stock.
On Tuesday March 26, 2024 Tata Investment stock hit a 5% lower circuit for the tenth time in the last 11 trading sessions, underscoring the intensity of its downward trajectory.
The stock had reached an all-time peak of Rs 9,756 on March 7 before undergoing a 43% correction, trading at Rs 5,663 on Tuesday, March 26, 2024. This sharp decline over 10 days resulted in a staggering loss of nearly Rs 20,000 crore in market capitalization. Consequently, the company’s market cap dwindled from Rs 49,365 crore on March 7 to Rs 30,155 crore within a span of two weeks.
Throughout the week when Spark Capital deliberated on the potential listing of Tata Sons by September 2025, the stock consistently hit upper circuits of 5%.
However, the likelihood of Tata Sons going public appears slim as the group grapples with strategies to comply with RBI regulations. Options under consideration include reducing group-level debt and restructuring entities like Tata Capital.
Moreover, Tata Sons recently divested 0.64% of its stake in the lucrative Tata Consultancy Services Ltd. (TCS), fetching approximately Rs 9,000 crore.
Amidst the turbulence, other Tata Group companies have also faced challenges. Tata Chemicals, currently under the F&O ban, along with Tata Consumer Products and TCS, all witnessed a 7.5% decline in stock value this week.