Tata Group stocks on Tuesday hurtled down by up to 4.2 per cent after Cyrus Mistry was removed as chairman of India’s largest conglomerate and replaced by his predecessor Ratan Tata in the interim.
Shares of Tata Steel declined by 4 per cent, Tata Power 3.11 per cent, Tata Motors 2 per cent and Tata Consultancy Services 1.60 per cent on BSE.
Among others, Tata Chemicals went down 4.18 per cent, Tata Communications dropped 3.93 per cent, Tata Coffee (3.89 per cent) and Tata Global Beverages (3.47 per cent).
Shares of Tata Sponge Iron slipped 3.35 per cent and Tata Elxsi shed 2.30 per cent.
In a sudden and dramatic turn of events, Mistry was yesterday removed as Chairman of India’s largest conglomerate Tata Group and replaced by his predecessor Tata in the interim, a development that can trigger a confrontation between the single-largest shareholder and the company’s founding family.
Mistry’s family firm Shapoorji Pallonji Group has 18.4 per cent in Tata Sons.
In the surprise development, the board of Tata Sons, where 66 per cent shares are held by philanthropic trusts endowed by members of the Tata family, ousted Chairman Mistry, saying it was acting “for the long-term interest” of the firm.
The board named a five-member search committee, which includes Tata, to choose a successor within four months.