Stock Market / Tata Group Stocks Crash as Chandrasekaran Declines Reappointment Rules out Another Term

Mumbai, Aug 12: Tata Group-backed companies witnessed heavy selling pressure on Wednesday, losing nearly ₹46,000 crore in market value after chairman N. Chandrasekaran announced he would not seek reappointment when his current term ends in February 2027.

Shares of Tata Consultancy Services fell as much as 5.95 per cent to an intraday low of ₹2,300.10 on the NSE. Tata Motors Passenger Vehicles dropped about 4 per cent, while Tata Steel declined over 2 per cent to ₹183.60.

Other group firms including Tata Elxsi, Tata Communications, Tata Technologies, Tata Power and Trent also slipped up to 2 per cent.

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The sell-off followed Chandrasekaran’s statement that he would step aside, raising uncertainty over succession at India’s largest conglomerate. “My current tenure as chairman will end in February 2027,” he said.

“The Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously recommended extending my term by another five years, and the recommendation was recorded by the Tata Sons Nomination and Remuneration Committee and the board. However, the proposal was not carried forward because one board member did not support it.”

Chandrasekaran explained, “I chose to defer the matter then because I felt strongly that such an important decision should not proceed without unanimous support. It has been six months since that Board meeting, and no resolution has been reached till date.”

He added, “I have now decided not to offer myself for reappointment when my present term ends, citing the need for leadership clarity as Tata Sons executes several strategic projects.”

Chandrasekaran, who became chairman in 2017 after leading Tata Consultancy Services, has overseen major investments and acquisitions across the group. His decision marks a pivotal moment for Tata Sons as succession planning takes center stage.

(IANS)