Reports initially suggested Tata Sons' listing was forthcoming but now indicate an IPO is unlikely in the near future.
Tata Sons is exploring alternative options to comply with RBI regulations rather than pursuing an IPO.
Share prices of various Tata group companies dropped by up to 10% on March 11 following the news.
Earlier, there was a surge in Tata group stocks, with some gaining up to 36%, driven by IPO speculation.
Despite earlier optimism, investors started booking profits as reports shifted from an "imminent" listing to an "improbable" one.
Tata Sons is registered as a Core Investment Company (CIC) with the RBI and classified as an "upper layer" Non-Banking Financial Company (NBFC), necessitating its listing within three years of notification.
The RBI issued a notification in September 2023, mandating Tata Sons to list by September 2025 to comply with regulatory requirements.
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