- Cyrus Mistry's surprise removal has shocked markets participants
- Deleveraging efforts of Tata group will be impacted, say analysts
- TCS suffered the biggest drop in market cap among Top 5 Tata firms
Mr Mistry's surprise removal has shocked markets and shares of most Tata companies have shown a decline in the last two days.
The ouster of the 48-year-old Mr Mistry and the disbanding of his advisory team may distract the salt-to-software conglomerate from its efforts to trim debt and reshape some of its businesses, say analysts.
Under Mr Mistry, the Tata Group has taken "significant steps towards deleveraging and better utilization of capital," Citigroup said, adding that his absence may impact the group's future strategy and delay the process of bringing down the debt levels.
Of the other Tata group companies, Tata Steel, Titan, Tata Power have suffered a loss of Rs 2,640 crore, Rs 244 crore, and Rs 811 crore respectively in market value in last two days.
In comparison, the Sensex fell 1.2 per cent in last two days.
Ratan Tata has been handed interim charge while the group looks for a new chairman. He told top CEOs of the group yesterday that they should not worry about the changes in leadership, and must focus instead on business and making their companies market leaders.
Tata Sons yesterday appointed Jaguar Land Rover chief executive officer Ralf Speth and Tata Consultancy Services CEO and managing director N Chandrasekaran as additional directors.