Mumbai — Shares of several Tata Group companies fell sharply Wednesday after N. Chandrasekaran decided not to seek another term as chairman of Tata Sons, erasing more than Rs 68,000 crore in combined market value.
The total market capitalization of the conglomerate’s 17 listed companies declined by Rs 68,119 crore to Rs 26.32 lakh crore, down from nearly Rs 27 lakh crore in the previous trading session.
Tata Consultancy Services recorded the biggest decline in value. Shares of the IT services company dropped 4.79% to Rs 2,323.30, reducing its market capitalization by Rs 42,440 crore to Rs 8.40 lakh crore.
Titan was the second-largest contributor to the decline, losing Rs 9,304 crore in market value as its shares fell nearly 2%.
Tata Motors Passenger Vehicles saw its valuation decline by Rs 4,898 crore, while Tata Steel lost Rs 4,745 crore. Tata Consumer Products shed Rs 3,098 crore in market capitalization.
Tata Power and Indian Hotels also fell, losing Rs 1,598 crore and Rs 1,566 crore in market value, respectively.
Other Tata companies ending lower included Tata Communications, Tata Elxsi, Trent, Tata Investment Corporation, Tejas Networks and Tata Teleservices (Maharashtra).
A handful of group companies bucked the broader decline. Tata Motors added Rs 1,786 crore in market value, while Tata Capital gained Rs 700 crore. Tata Chemicals and Voltas posted more modest increases of Rs 167 crore and Rs 66 crore, respectively.
The market reaction followed Chandrasekaran’s decision not to seek an extension of his tenure as chairman after a board member opposed his reappointment.
Chandrasekaran said prolonged uncertainty surrounding the matter made it necessary for the Tata Sons board to proceed with succession planning.
In a statement, he said he had completed four decades of his professional career with the Tata Group and described his nearly decade-long tenure as Tata Sons chairman as both a privilege and a significant responsibility. (Source: IANS)
