Tata stocks bleed as Trust calls Chandra move 'illegal'
On Friday, Tata Group stocks like TCS and Tata Chemicals plummeted up to 8% following Tata Trusts' claim that chairman N Chandrasekaran's reappointment was illegal. This decision followed Tata Sons' granting of a fresh five-year term to Chandrasekaran and the initiation of an IPO for the group's holding company. TCS saw its shares drop 3.5% to Rs 2,118 apiece, while Tata Investment Corp fell 5% to Rs 683 per share on the BSE.
TCS, India's largest IT services company, was among the major Tata groups that saw declines. The decision was met with opposition from Noel Tata, chairman of Tata Trusts, who was the sole director to vote against the resolution. The Bombay Stock Exchange (BSE) reported that Tata Trusts, controlling 66% of Tata Sons, opposed the resolution and considered it a legal nullity due to provisions in the Articles of Association of Tata Sons.
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