Tata Group stocks fall 8% as Tata Trusts calls Chandrasekaran’s extension illegal
Tata stocks took a notable hit following the declaration by Tata Trusts that Chandrasekaran's reappointment was illegal. The Reserve Bank of India also denied Tata Sons' plea to maintain private status. With Tata Trusts holding a majority of shares and opposing the IPO, Noel Tata has proposed looking into structural alternatives to appease the regulator. The upcoming Annual General Meeting is now…
Tata Group stocks experienced an 8% drop on Friday after Tata Trusts deemed N Chandrasekaran's appointment illegal. This followed Tata Sons granting Chandrasekaran a five-year term and initiating IPO plans for the group's holding company. Tata Chemicals fell 8% to its lowest point of Rs 719, while Tata Investment Corp dropped 5% to Rs 683 per share.
TCS and Tata Motors led the decline among IT and automobile companies, with TCS losing 3.5% to Rs 2,118 and Tata Motors slipping 3%. Tata Trusts, which controls 66% of Tata Sons, opposes the reappointment, calling it illegal. The RBI also rejected the company's request to remain private, pushing for a public listing. Despite opposition, Chandrasekaran's reappointment was approved by majority decision in favor of the board.
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Also reported by 3 other outlets
- Tata stocks bleed as Trust calls Chandra move 'illegal' economictimes.indiatimes.com
- Tata Group Stocks Fall Up To 7% As Uncertainty Mounts Over Tata Sons Listing After Noel Opposes Chandra's Reappointment freepressjournal.in
- India's Tata Group stocks fall after SP Group unveils US$2.6bil stake sale plan nst.com.my
