Tata Group Stocks Fall Up To 8.4% As Tata Trusts Challenges Chandrasekaran’s Reappointment

Tata Group stocks were in focus on 18 September 2026 after Tata Trusts challenged the Tata Sons board’s decision to reappoint N Chandrasekaran as executive chairman for another five years.

Tata Trusts, which controls a majority stake in Tata Sons, said it had not agreed to the decision and questioned its legal validity. The dispute comes shortly after the Reserve Bank of India (RBI) rejected Tata Sons’ request to retain its private, unlisted status.

Tata Stocks Decline As Leadership Dispute Puts Group Companies In Focus

Tata Chemicals Limited fell as much as 8.44% on Friday in early trading, while Tata Consultancy Services Limited (TCS), Tata Motors Limited, Tata Motors Passenger Vehicles (PV) Limited, and Tata Elxsi Limited were also under pressure.

At 10:46 am on 18 September on the National Stock Exchange (NSE):

• TCS shares were trading at ₹2,137.40, down 2.40%.

• Tata Chemicals shares were trading at ₹713.55, down 8.44%.

• Tata Motors Passenger Vehicles’ shares were trading at ₹306.10, down 2.67%.

• Tata Elxsi shares stood at ₹3,352.90, down 0.85%.

Tata Trusts Challenges Reappointment As RBI Listing Rules Come Into Focus

Tata Sons’ board voted by majority to reappoint Chandrasekaran as executive chairman for five years after his current term ends. Noel Tata, chairman of Tata Trusts, was the only director to vote against the resolution.

Tata Trusts subsequently said its position remained unchanged and argued that the resolution was a legal nullity under Tata Sons’ Articles of Association.

Tata Trusts controls 66% of Tata Sons through the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust. The Shapoorji Pallonji Group holds an 18.37% stake and is the largest minority shareholder. It has viewed a listing as a practical route to unlocking value.

Tata Trusts Seeks Alternatives To A Public Listing

Tata Trusts said on 17 September 2026 that the Tata Sons board should examine all available options rather than focus only on a public listing. Noel Tata also said the RBI’s order did not specifically instruct Tata Sons to list and did not prescribe a particular step.

The Annual General Meeting (AGM) of Tata Sons has also emerged as a significant development. Chandrasekaran needs to be reappointed as a director at the AGM to continue as chairman of Tata Sons, while Tata Trusts has the decisive position as majority shareholder.

The AGM has been deferred because the Sir Ratan Tata Trust, one of the two trusts holding the majority stake, is currently barred by the Maharashtra charity commissioner from taking decisions and cannot participate. This has resulted in a lack of quorum.

The two current trust nominees, Noel Tata and Venu Srinivasan, voted in opposite directions on the resolutions under consideration.

Tata Group Companies Hold Stakes In Tata Sons

A potential listing of Tata Sons, the holding company of 31 group companies, could unlock value for listed Tata companies that hold stakes in the unlisted parent. Tata Chemicals, Tata Motors and Tata Investment Corporation are among the listed companies with holdings in Tata Sons.

• Tata Steel and Tata Motors PV each hold a 3.06% stake in Tata Sons.

• Tata Chemicals owns 2.53%.

• Tata Power holds 1.65%

• Indian Hotels holds 1.11%

• Tata Consumer holds a 0.4% stake

• Tata Investment Corporation owns 0.25%.

Tata Chemicals’ roughly 2.5% holding in Tata Sons is estimated to be worth ₹10,000-15,000 crore. This is close to the company’s current market capitalisation, highlighting the significance of its Tata Sons stake in the listing discussion.

Tata Sons is classified as a core investment company and is subject to RBI rules applicable to non-bank lenders. The rules require companies with assets above ₹1 lakh crore, or those with direct or indirect access to public funds, to be listed.

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