Mumbai, Aug 12 (IANS) Tata Group-backed companies’ stocks witnessed heavy selling pressure on Wednesday, plunging up to 5.95 per cent and losing about Rs 46,000 crore in market value after N. Chandrasekaran said he would not offer himself for reappointment as chairman of Tata Sons when his current term expires in February 2027.
Shares of several Tata Group-backed companies witnessed selling pressure as the chairman’s decision raised uncertainty over succession at India’s largest conglomerate.
Tata Consultancy Services shares declined as much as 5.95 per cent to hit an intraday low of Rs 2,300.10 on the NSE, while Tata Motors Passenger Vehicles shares fell about 4 per cent
Similarly, Tata Steel shares also fell by more than 2 per cent to Rs 183.60.
Moreover, the sell-off by investors also weighed on other group companies.
Shares of Tata Elxsi, Tata Communications, Tata Technologies, Tata Power and Trent also traded up to 2 per cent per cent.
The sell-off followed Chandrasekaran’s announcement that he would not seek another term as chairman of Tata Sons, ending months of uncertainty over his future at the group holding company.
In a statement, Chandrasekaran said his current tenure as chairman will end on Feb 2027.
He said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously recommended extending his term by another five years and that the recommendation had also been recorded by the Tata Sons Nomination and Remuneration Committee and the board.
However, he said the proposal was not carried forward because one board member did not support it.
“I chose to defer the matter then because I felt strongly that such an important decision should not proceed without unanimous support,” Chandrasekaran said.
“It has been 6 months since that Board meeting, and no resolution has been reached till date.”
Chandrasekaran said he had now decided not to offer himself for reappointment when his present term ends, citing the need for leadership clarity as Tata Sons executes several strategic projects.
Chandrasekaran — who became chairman of Tata Sons in 2017 after leading Tata Consultancy Services — has overseen major investments and acquisitions across the group.
–IANS
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