Tata Group Stocks Lose Rs 46,000 Crore In Market Value As N Chandrasekaran Won't Seek Reappointment
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TCS, Tata Motors, Tejas Networks and Tata Consumer Products were among the biggest losers as Tata Group stocks shed a combined Rs 46,000 crore in market value on Wednesday, after N Chandrasekaran said he will not seek reappointment as Tata Sons chairman when his term ends in February 2027. TCS fell the most among group stocks, down over 4 percent, following the announcement that came days ahead of Tata Sons' August 18 annual general meeting.
Tata Group stocks lost a combined Rs 46,000 crore in market value on Wednesday after Tata Sons chairman N Chandrasekaran said he would not seek reappointment when his current term ends in February 2027. The announcement triggered a broad selloff across the group's listed companies.
Tata Group Stocks Slide On Chandrasekaran Exit News
Tata Consultancy Services fell 4.12 percent, the sharpest decline among the Tata stocks in focus. Tata Motors dropped 2.47 percent, while Tejas Networks declined 2.34 percent.
Tata Consumer Products fell 1.81 percent, Tata Communications lost 1.63 percent and Tata Steel declined 1.55 percent. Tata Teleservices (Maharashtra) fell 1.24 percent, while Tata Power and Tata Elxsi each declined 1.20 percent.
Indian Hotels Company fell 1.07 percent, Voltas declined 0.88 percent, Tata Investments lost 0.69 percent and Trent fell 0.25 percent.
Not all Tata stocks ended lower. Tata Chemicals was the biggest gainer, rising 1.53 percent. Tata Motors' separate listing gained 0.99 percent, while Tata Capital rose 0.27 percent.
TCS was also the worst performer among the major Tata stocks, with Reuters reporting that the stock fell about 4.1 percent after the news of Chandrasekaran's decision emerged.
Why Chandrasekaran Is Stepping Down
Chandrasekaran said his current tenure as Tata Sons chairman ends on February 20, 2027.
In a statement, he said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended extending his 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 did not go through after one board member withheld support. He said he subsequently deferred the decision in the absence of unanimous backing.
"It has been 6 months since that Board meeting, and no resolution has been reached till date," he said.
Chandrasekaran said he had now decided not to offer himself for reappointment when his current term concludes.
He said Tata Sons had several strategic projects at critical stages of execution and that clarity on leadership was important for employees, investors, partners and other stakeholders.
He said he had communicated his decision to the Tata Sons board on Wednesday and asked it to decide on succession soon to ensure a smooth transition.
"I have decided not to offer myself for reappointment when my term ends on Feb 20, 2027," Chandrasekaran said.
The decision comes just days before Tata Sons' annual general meeting on August 18. Chandrasekaran will continue as chairman until the end of his current term, according to sources cited by Reuters.
Also Read - N Chandrasekaran Resigns As Tata Sons Chairman, Will Complete Term Until February 2027
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Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
