Most Tata group stocks trade lower amid reports of Chandrasekaran's exit

Most of the group stocks traded with cuts of up to 1 per cent in early trade on the NSE. Tejas Networks was the top loser.

Tata group stocks: Shares of Tata group companies hogged the limelight in trade on Wednesday amid reports that Tata Sons Chairman N Chandrasekaran is considering stepping down from his role.

 

Most of the group stocks traded with cuts of up to 1 per cent in early trade on the NSE. Tejas Network was the worst performer with a 1.17 per cent decline, followed by Tata Consumer, which shed 1.03 per cent. Meanwhile, crown jewel Tata Consultancy Services (TCS) was 0.5 per cent lower.

 

Titan, Tata Chemicals, Tata Power, Tata Elxsi and Indian Hotels also traded in the red as of 9.25 AM. On the flip side, Tata Motors PV, Nelco and Tata Steel were half a per cent higher.

 

Tata Sons is the holding company of the salt-to-software group that houses 30 companies, including ​TCS, Tata Motors and unlisted names like Air India.

 

Why is N Chandrasekaran looking to step down?

Media reports suggest that Chandrasekaran is looking to resign from his position ahead of the shareholder meeting on August 18 amid ‌uncertainty over his reappointment as a director and tensions with the head of the group's charity arm.

 

Tata Sons shareholders are set to vote on Chandrasekaran's reappointment as a director at the upcoming annual general meeting, according to a company notice. His current term as chairman runs until February 2027. READ MORE

 

Tata Sons in February postponed a decision on reappointing Chandrasekaran as chairman after Noel Tata, chairman of the group's charity arm Tata Trusts, opposed the move, Reuters previously reported.

 

Tata Sons and Tata Trusts have clashed over board representation, strategy and how to handle the planned exit ​of minority shareholder Shapoorji Pallonji, a dispute that led to the ouster of a Tata Sons director.