- Tata Group stocks lost Rs 46,000 crore in market value after chairman's exit news
- TCS fell 4.12%, Tata Motors dropped 2.47%, and Tejas Networks declined 2.34%
- N Chandrasekaran will not seek reappointment as Tata Sons chairman in 2027
Tata Group stocks lost Rs 46,000 crore in market value on Wednesday after N Chandrasekaran said he would not seek reappointment as chairman of Tata Sons, with TCS, Tata Motors and Tejas Networks among the biggest decliners.
Tata Consultancy Services fell 4.12%, the sharpest decline among the stocks shown in the latest data. Tata Motors dropped 2.47%, while Tejas Networks declined 2.34%.
Tata Consumer Products fell 1.81%, Tata Communications lost 1.63% and Tata Steel declined 1.55%. Tata Teleservices (Maharashtra) fell 1.24%, while Tata Power and Tata Elxsi each declined 1.20%.
Indian Hotels Company fell 1.07%, Voltas declined 0.88%, Tata Investments lost 0.69% and Trent fell 0.25%.
Exit Decision
Chandrasekaran said his current tenure as chairman of Tata Sons ends on Feb. 20, 2027. The Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended extending his next term by five years, according to his statement. 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 after one Board member did not support it. He said he chose to defer the decision because there was no unanimous support.
"It has been 6 months since that Board meeting, and no resolution has been reached till date," Chandrasekaran said.
He said he had now decided not to offer himself for reappointment when his current term ends.
Succession Plan
Chandrasekaran said Tata Sons had several strategic projects at critical stages of execution and that leadership clarity was important for employees, investors, partners and other stakeholders.
He said he communicated his decision to the Tata Sons Board earlier on Wednesday and asked it to decide on succession soon to ensure a proper transition.
"I have decided not to offer myself for reappointment when my term ends on Feb 20, 2027," Chandrasekaran said.
Tata Stocks
Tata Chemicals was the biggest gainer among the stocks shown in the latest data, rising 1.53%. Tata Motors gained 0.99% in the separate listing shown, while Tata Capital rose 0.27%.
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