Afcons Infra shares hit 20% upper circuit as RBI asks Tata Sons to list

Shares of Afcons Infrastructure zoomed 20 per cent to hit the upper circuit at ₹304.55 on Tuesday after the Reserve Bank of India (RBI) rejected Tata Sons' application to surrender its NBFC licence, mandating a public listing for the conglomerate.

Afcons Infrastructure is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group, which is a stakeholder in Tata Sons.

The Shapoorji Pallonji (SP) Group has been pressing for Tata Sons to go public as it seeks to dilute its stake. The debt-laden group has repeatedly renewed its demand for a Tata Sons listing, arguing that it is not merely a matter of regulatory compliance but also in the public interest.

The SP Group, which holds about 18.5 per cent in Tata Sons, had at Tata Son's annual general meeting in 2024 asked the company to consider an IPO.

At 9:40 AM, Afcons Infrastructure shares had pared some of the gains but remained firmly in the green, trading 18 per cent higher at ₹299.40 on the NSE.

More than 13 million shares of the company changed hands across both exchanges in the first 25 minutes of trade. The stock was also among the most actively traded counters on the NSE.