- N Chandrasekaran will not seek reappointment as Tata Sons chairman in 2027
- TCS shares fell 5.36%, leading declines among Tata Group stocks on Wednesday
- Chandrasekaran deferred extension due to lack of unanimous Board support
Tata Group stocks extended their losses on Wednesday after N Chandrasekaran said he would not offer himself for reappointment as Tata Sons chairman when his current term ends on Feb. 20, 2027.
Tata Consultancy Services was the biggest decliner among the stocks in the latest data, falling 5.36%. Tejas Networks declined 3.12%, while Tata Motors fell 2.95%. Tata Steel dropped 2.41%, followed by Tata Elxsi at 2.17% and Tata Communications at 2.07%.
Tata Consumer Products fell 1.88%, Tata Teleservices (Maharashtra) declined 1.21% and Tata Power lost 1.17%. Indian Hotels Company fell 0.97%, Tata Investments declined 0.88% and Trent dropped 0.33%.
Exit Decision
Chandrasekaran's current tenure as Tata Sons chairman ends on Feb. 20, 2027. He said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended extending his next term by five years. The recommendation was also recorded by the Tata Sons Nomination and Remuneration Committee and the Board.
However, Chandrasekaran said the proposal was not carried through because one Board member did not support it. He said he chose to defer the decision in the absence of unanimous support.
ALSO READ: Why Did N Chandrasekaran Step Down Early?
"It has been 6 months since that Board meeting, and no resolution has been reached till date," Chandrasekaran said.
Chandrasekaran said he had communicated his decision to the Tata Sons Board and would not offer himself for reappointment when his current term ends. He asked the Board to decide on succession soon to ensure a proper transition.
Tata Stocks
Tata Chemicals was the biggest gainer among the stocks shown in the latest data, rising 2.15%.
Tata Motors gained 0.54%, while Tata Capital rose 0.50%. Voltas was marginally higher at 0.08%.
The latest data shows the decline is concentrated among several of the group's large listed companies, with TCS, Tata Motors and Tata Steel among the biggest fallers.
Chandra's Decade
Chandrasekaran took charge as Tata Sons chairman on Feb. 21, 2017. During his tenure, the market capitalisation of listed Tata Group companies rose more than 3.3 times, according to the background data provided.
The current market capitalisation of listed Tata Group companies stands at around Rs 22.5 lakh crore, according to the data provided.
Titan, TCS, Tata Steel and Trent added the most market capitalisation during his tenure.
Trent was the best-performing stock, rising 1,700%. NELCO gained 1,140%, Tata Investments rose 1,060%, Titan gained 1,020% and Tata Consumer Products rose 670%.
ALSO READ: N Chandrasekaran Urges Tata Sons Board To Decide On Succession Soon
Key Positions
Chandrasekaran joined TCS in 1987. He became chief operating officer and executive director before taking over as CEO and managing director in 2009, according to the background data provided.
He became a director of Tata Sons in October 2016 and took charge as chairman of Tata Sons and the Tata Group in February 2017.
His current term as Tata Sons chairman ends on Feb. 20, 2027.
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