Mumbai, September 18 (Daily Kiran) : The Tata Group faced a significant downturn on September 18, 2026, as shares plummeted nearly 8% amid a dispute between Tata Sons and its associated Trusts. This decline affected major companies within the group, including Tata Chemicals, Tata Investment Corporation, Tata Motors PV, Tata Power, and Tata Consultancy Services (TCS).
At 9:45 AM, Tata Chemicals saw a sharp decline of 7.78%, trading at ₹718.65. Tata Investment Corporation dropped 3.56% to ₹693.70, while Tata Motors PV fell 2.96% to ₹305. TCS experienced a 2.73% decrease, settling at ₹2,130.30, and Tata Technologies saw a 2.76% drop to ₹737.80.
Other companies also reported losses, with Tata Power down 0.99% to ₹365.35, Tata Elxsi falling 1.04% to ₹3,346.70, and Tejas Networks decreasing by 0.69% to ₹520.65. However, some stocks within the group, such as Tata Capital, Indian Hotels, Voltas, Nelco, and Oriental Hotels, showed limited gains.
The root cause of the share decline stems from a conflict between Tata Sons and the Trusts. The situation escalated when Tata Sons reappointed N. Chandrasekaran as chairman and announced plans for a public listing. In contrast, the Shapoorji Pallonji Group, a significant shareholder, proposed selling a portion of its stake.
Tata Trusts opposed the public listing, reiterating their stance to maintain the group’s century-old structure. In a press release, Tata Trusts deemed the reappointment of N. Chandrasekaran as “illegal,” citing that the appointment or reappointment of the chairman requires a majority vote from the Trusts’ nominee directors.
The release emphasized that Tata Sons’ board cannot legally convene to appoint or reappoint a chairman without the presence of both nominee directors from Tata Trusts. Noel Tata, one of the nominee directors, opposed the proposal, rendering the reappointment invalid.
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