Majority of Tata stocks rebound after Chandra’s exit

The majority of the Tata Group stocks bounced back on Thursday after falling in the previous trade following the announcement by N Chandrasekaran that he will step down as chairman of Tata Sons when his current term ends on February 20, 2027.

Shares of Tata Technologies jumped 3.26 per cent, Tata Consumer Products climbed 2.74 per cent, Tata Motors Passenger Vehicles advanced 1.68 per cent, Tata Elxsi was up 1.36 per cent, and Tata Communications edged higher by 1.28 per cent. Trent moved up 1.08 per cent, TCS rallied 0.99 per cent, Tata Power (0.53 per cent), Indian Hotels Company (0.42 per cent) and Voltas (0.25 per cent) on the BSE. However, Titan declined 1.08 per cent, Tata Steel fell 0.30 per cent, and Tata Chemicals was down 0.13 per cent.

Tata Group stocks fell on Wednesday, with TCS down nearly 4 per cent, after the announcement that N Chandrasekaran will step down as chairman of Tata Sons when his current term ends in February 2027, wrapping up a nine-year tenure that transformed the scale and breadth of one of India’s most influential conglomerates but ended with a standoff with Tata Trusts Chairman Noel Tata over his reappointment.

Chandrasekaran, 63, who has spent 40 years with the Tata Group, told the Tata Sons board on Wednesday that he would not offer himself for another term and asked the directors to decide on a successor soon to ensure an orderly transition. His decision comes after a six-month impasse over his reappointment and marks the end of what would have been an unprecedented third five-year term at the helm of Tata Sons.

“I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution,” Chandrasekaran, widely known as Chandra, said in a statement.

Tata Sons is the principal investment holding company and promoter of the Tata Group, controlling more than 30 companies, including Tata Consultancy Services, Tata Motors and Air India. Tata Trusts collectively own about 66 per cent of Tata Sons, giving the philanthropic arm decisive influence over the group’s governance.

Chandra said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, which together hold 51.54 per cent of Tata Sons, had unanimously recommended extending his term by five years. The recommendation was recorded and backed by the Tata Sons Nomination and Remuneration Committee and board before being put to directors on February 24.

“However, the proposal was not carried through because one of the Board Members did not support it, and in the absence of unanimous support, I chose to defer the decision,” he said.

The Tata Trusts on Thursday initiated the process of finding N Chandrasekaran’s successor to lead the diversified conglomerate’s holding company, Tata Sons.

“The Sir Dorabji Tata Trust (SDTT) respects Chandrasekaran’s decision not to offer himself for re-appointment. We place on record our deepest appreciation for his contribution and stewardship of Tata Sons and the Tata group over the past decade,” a statement from the Trusts, which hold nearly two-thirds of Tata Sons, said.