Tata Group lost over Rs 26,800 crore after N Chandrasekaran announced his decision to step down as Tata Sons Chairman. His current tenure runs until February 20, 2027.
Tata Group has a wide range of companies working in varied sectors ranging from chemicals, motor vehicles, information and technology, telecommunication, power generation, consumer goods and retail, and hospitality and travel.
At the time of writing this story at 1:25 pm, Tata Consultancy Services reported the maximum loss among the stocks in the latest data, falling 4.8 per cent. Tejas Networks declined 2.84 per cent, followed by Tata Consumer Products at 2.8 per cent, and Tata Elxsi at 2.58 per cent. While Tata Steel fell 2.02 per cent, Tata Communications slipped 1.62 per cent.
Tata Teleservices (Maharashtra) declined 1.24 per cent and Tata Power lost 1.32 per cent.
Shares of Tata Investments dropped 1.68 per cent, Indian Hotels Company slipped 1.51 per cent, and Trent declined 0.55 per cent.
Amid Massive Losers, There Are Few Gainers
At 1:15 pm, Tata Chemicals was up 0.91 per cent, while Tata Capital and Voltas recorded marginal gains at 0.38 per cent and 0.16 per cent respectively.
Why N Chandrasekaran Decided To Step Down
In his statement, Chandrasekaran said that he has chosen to step down since one of the Board members did not support the decision to extend his tenure by five years.
He said Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended the extension of his next term for a period of five years, which was recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board. Subsequently, the resolution was tabled in the Tata Sons Board on February 24 this year.
"However, the proposal was not carried through because one of the Board Members did not support it, and in the absence of unanimous support, I chose to defer the decision," he wrote.
Read N Chandrasekaran's Full Statement
Chandrasekaran noted that it has been six months since that Board meeting, but no resolution has been reached till date.
"Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution. It is not only necessary to have a leader in place to lead the Group beyond Feb 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders," he added.
Therefore, Chandrasekaran decided not to offer himself for the reappointment.
"I have asked the Board to decide on the succession soon to ensure a proper transition," he concluded.
Chandrasekaran has been with the Tata Group for nearly 40 years. He served as Chairman of Tata Sons and the Tata Group since January 2017. He joined Tata Consultancy Services (TCS) as an intern in 1987 and went on to become the company's Chief Executive Officer in 2009 before taking charge of Tata Sons.
