Tata stocks fall after Chandrasekaran row; Tata Chemicals tumbles 9 pc
Tata Group shares decline in morning trade after Tata Sons board reappoints N Chandrasekaran, while Tata Trusts rejects the resolution as void
New Delhi, Sep 18 (PTI) Tata Group stocks declined on Friday during morning trade after advancing in the previous session, with Tata Chemicals tumbling nearly 9 per cent, amid profit-taking.
Tata Sons plunged into its most serious boardroom crisis since the ouster of Cyrus Mistry after directors voted to reappoint N Chandrasekaran as executive chairman for a further five-year term, prompting Tata Trusts to declare the resolution void and reopen a broader battle over the conglomerate's future.
Shares of Tata Chemicals tanked 8.89 per cent, Tata Investment Corporation tumbled 5 per cent, TCS dropped 3.64 per cent, Tata Motors Passenger Vehicles declined 3.35 per cent, Tata Power dipped 2 per cent, Tata Elxsi was down 1.76 per cent, Tata Steel edged lower by 1.30 per cent, Titan 1.29 per cent, Tata Consumer Products 0.98 per cent, Tata Communications dipped 0.72 per cent and Voltas 0.69 per cent on the BSE.
Tata Group stocks ended higher on Thursday, with Tata Chemicals surging nearly 7 per cent.
The nearly three-hour meeting in Mumbai on Thursday produced rival claims over the validity of the vote, a legal opinion from former Chief Justice of India D Y Chandrachud and a fresh confrontation over whether Tata Sons should remain private or pursue a stock-market listing.
Chandrasekaran, 63, told the board last month that he would not seek another term when his current tenure ends on February 20, 2027. His decision followed repeated failure by the board to reach unanimity on his renewal.
The board reversed course after the Reserve Bank of India rejected Tata Sons' application to surrender its registration as a core investment company, reviving the prospect of a listing and increasing pressure for leadership continuity.
Tata Sons, in a statement, said Chandrasekaran had "acceded to the Board's request to reconsider his decision" and that the board "thereafter resolved by a majority vote to re-appoint him as Executive Chairman for a further term of five years".
Four directors supported the resolution, while Noel Tata, chairman of Tata Trusts, voted against it.
Tata Trusts, which together with affiliated trusts controls about 66 per cent of Tata Sons, rejected the decision. PTI