Shares of most Tata Group stocks traded in the negative territory in morning trade on September 26 amid reports that the group plans to halve the number of listed companies by merging the entities.
Shares of Tata Motors and Tata Chemicals fell more than 6%. Shares of Tata Steel, Tata Power Company, Tata Motors-DVR and Nelco fell more than 4%.
TCS, however, ended in the green, with a mild gain of 0.40%.
Due to the fall in stock prices, the group's market capitalisation of Tata group stocks fell by more than 24,000 crore on September 26.
"Tata Sons has commenced plans to halve the number of listed companies in the conglomerate to an estimated 15 from 29 in the coming months to focus on investing in fewer but bigger entities that can ably compete in the marketplace," said an Economic Times report.
"The group with $128 billion revenue and $255 billion market cap is hastening its simplification and synergising strategy to better focus on growth and scale and improve cashflows in the larger companies, said executives close to the development. This is part of Tata Sons chairman N Chandrasekaran's stated plan of transforming the country's oldest conglomerate to make it future-ready," the report said further.
On September 23, Tata Steel announced the amalgamation of Tata Steel Long Products, Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, Tata Steel Mining, and S & T Mining Company with Tata Steel.
