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Tata Group companies faced heavy selling pressure on Friday, September 18, as the combined market capitalization of listed group firms fell by about Rs. 46,634 crore. The decline came amid growing uncertainty around Tata Sons, the group’s holding company, following a board decision on Chairman Natarajan Chandrasekaran’s tenure and a potential public listing.
The sell-off followed a decision by the Tata Sons board on Thursday to extend Natarajan Chandrasekaran’s tenure by five more years and approve steps toward a potential public listing of the holding company.
The development followed the Reserve Bank of India's refusal to exempt Tata Sons from a listing requirement last week. Chandrasekaran, widely known as Chandra, agreed to continue in the role weeks after announcing plans to step down in February.
Tata Trusts, the controlling shareholder of Tata Sons, opposed the board decision and called Chandrasekaran’s tenure extension ‘illegal.’ The Trusts also said they did not agree to a Tata Sons listing, adding to uncertainty around the group’s future direction.
Also Read: Tata Sons’ Rs. 25,000 Cr Stake Plan Triggers Tata Stock Selloff
Tata Consultancy Services (TCS) recorded the biggest erosion in market value among Tata Group stocks. Its market capitalization fell by around Rs. 29,550 crore after the stock declined 3.88% during Friday’s trading session.
Tata Motors Passenger Vehicles followed, losing about Rs. 3,804 crore in market value after its shares fell 3.40%. Tata Steel lost approximately Rs. 2,154 crore as the stock declined 1%.
Tata Chemicals fell 11%, wiping out nearly Rs. 1,942 crore from its market capitalization. Tata Consumer Products lost around Rs. 1,725 crore, while Tata Technologies fell 4.78%, wiping out nearly Rs. 1,402 crore in market value.
Tata Investment Corporation lost around Rs. 838 crore, while Voltas shed approximately Rs. 779 crore. Tata Elxsi lost nearly Rs. 692 crore. Titan Company’s market value fell by around Rs. 3,748 crore despite a 0.88% decline in its share price.
The boardroom dispute comes as several Tata Group businesses face operational and financial challenges. Jaguar Land Rover is dealing with a slowing European market, while Air India continues to face losses after a fatal crash and amid geopolitical disruptions.
Tata Trusts also said Shapoorji Pallonji Group, Tata Sons’ second-largest shareholder, proposed monetizing part of its 18.4% stake through a two-tranche buyout that could generate at least USD 2.61 billion over 18 months.
