Mumbai, August 12: Following the resignation of N. Chandrasekaran as Chairman of Tata Sons, a significant sell-off occurred in Tata Group shares on Wednesday. This led to a collective market capitalization drop of over ₹68,000 crores across all listed companies within the group.
The total market capitalization of the group’s 17 listed companies fell by ₹68,119 crores, decreasing to ₹26.32 lakh crores from approximately ₹27 lakh crores in the previous session.
The decline in market value was primarily driven by Tata Consultancy Services (TCS), which saw its shares close down by 4.79% at ₹2,323.30. This resulted in a market cap reduction of ₹42,440 crores, bringing it down to ₹8.40 lakh crores.
Titan also contributed significantly to the group’s valuation drop, with its shares declining nearly 2%, resulting in a market cap of ₹9,304 crores.
Other major companies that experienced market cap declines included Tata Motors Passenger Vehicles, which saw a decrease of ₹4,898 crores, and Tata Steel, which lost ₹4,745 crores in market capitalization.
Tata Consumer Products faced a reduction of ₹3,098 crores, while Tata Power and Indian Hotels reported losses of ₹1,598 crores and ₹1,566 crores, respectively.
Several other Tata companies also recorded declines. Tata Communications lost ₹812 crores in market value, Tata Elxsi saw a drop of ₹606 crores, Trent’s market cap decreased by ₹907 crores, Tata Investment Corporation lost ₹508 crores, and Tejas Networks faced a reduction of ₹265 crores.
Despite the overall sell-off, not all Tata shares were adversely affected. Tata Motors experienced an increase in market value by ₹1,786 crores, and Tata Capital gained ₹700 crores.
Tata Chemicals and Voltas also saw minor gains, with their market values increasing by ₹167 crores and ₹66 crores, respectively.
This sell-off occurred after a board member opposed the proposal to extend Chandrasekaran’s term as chairman, prompting his decision not to seek an extension.
Chandrasekaran stated that the prolonged uncertainty surrounding this matter necessitated the board to advance its succession planning. He reflected on his nearly ten-year tenure as chairman as both an honor and a significant responsibility, marking four decades in his professional career with Tata Group.
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