The shares of Tata Group’s companies plummeted up to 10 per cent on Friday amid broke out of rift between Tata Sons’ board and Tata Trust over the reappointment of N. Chandrasekaran as executive chairman of Tata Group’s holding company. Earlier, on Thursday, the Tata Sons board decided to reappoint Chandrasekaran to the top post for another 5 years with a majority vote of 4-1. However, Noel Tata and Tata Trusts–the highest stakeholders in Tata Sons opposed the move and vowed to oust Chandrasekaran at the upcoming AGM.
Meanwhile, the Tata Group’s stock reacted to the development as Tata Chemicals shares fell nearly 10 per cent, while Tata Investment Corporation stock declined by over 3 per cent. Other Tata Group stocks, including Tata Motors Passenger Vehicles and Tata Power, traded lower as well.
Tata Group’s Stocks Today
Tata Chemicals: Opened at Rs 729 and touched a low of Rs 7002.05, declining 9.92 per cent on NSE till 12:56 PM.
Tata Investment Corporation: Fell by 4 per cent, opened at Rs 688 and hit a low of Rs 682.55.
Tata Motors Passenger Vehicles: Last seen, the Tata Motors Passenger Vehicle stocks were trading at Rs 304.50, down Rs 3.18 per cent
Tata Power Share Price: Recovering from initial losses, trading at Rs 368.55, down nearly 1 per cent. Earlier, it hit a low of Rs 360.90.
Earlier, on Thursday, Tata Group shares rose when N Chandra's tenure as Chairman of Tata Sons was reaffirmed. However, Noel Tata's opposition to the reappointment deepened the decline on September 18.
Tata Sons Board Vs Tata Trusts And Noel Tata
The Tata Sons board approved a fresh five-year term for N. Chandrasekaran as Chairman of Tata Group’s holding company, reportedly with a majority vote in a recent board meeting. According to a Moneycontrol report, the Tata Sons board voted 4-1 to retain Chandrasekaran. However, Noel Tata stated that he considers the vote "illegal, challenging the validity of the decision.
The board had a roughly three-hour meeting in Mumbai on Thursday, according to PTI, weeks after Chandrasekaran told directors in August that he would not seek reappointment when his current term ends on February 20, 2027.
"I voted against Chandra's appointment as chairman. My veto was wrongly overridden based on a legal opinion. This decision is illegal. I have registered my dissent," Noel Tata told Moneycontrol.
Noel Tata, chairman of the Tata Trusts, was the only member to vote against the proposal to reappoint Chandrasekaran.
Disclaimer: This story is for informational purposes only. It should not be considered as investment advice.