Mumbai: Shares of Tata Group companies came under broad selling pressure on Wednesday after N. Chandrasekaran decided not to seek reappointment as chairman of Tata Sons, wiping out more than Rs 68,000 crore in combined market capitalisation despite gains in a handful of group stocks.
The combined market capitalisation of the group’s 17 listed companies fell by Rs 68,119 crore to Rs 26.32 lakh crore from nearly Rs 27 lakh crore in the previous session.
Tata Consultancy Services (TCS) accounted for the largest share of the market value erosion.
The IT major’s market capitalisation declined by Rs 42,440 crore to Rs 8.40 lakh crore after its shares fell 4.79 per cent to Rs 2,323.30.
Titan emerged as the second-largest drag on the group’s valuation, with its market capitalisation shrinking by Rs 9,304 crore as the stock declined nearly 2 per cent.
Other major contributors to the decline included Tata Motors Passenger Vehicles, which saw its market value fall by Rs 4,898 crore, and Tata Steel, which lost Rs 4,745 crore in market capitalisation.
Tata Consumer Products shed Rs 3,098 crore, while Tata Power and Indian Hotels lost Rs 1,598 crore and Rs 1,566 crore, respectively.
Several other Tata companies also closed lower. Tata Communications lost Rs 812 crore in market value, Tata Elxsi declined by Rs 606 crore, Trent by Rs 907 crore, Tata Investment Corporation by Rs 508 crore and Tejas Networks by Rs 265 crore.
Tata Teleservices (Maharashtra) also registered a decline in market capitalisation. Not all Tata Group stocks participated in the sell-off.
Tata Motors added Rs 1,786 crore to its market value, while Tata Capital gained Rs 700 crore.
Tata Chemicals and Voltas also ended with modest gains, adding Rs 167 crore and Rs 66 crore, respectively.
The selling pressure followed Chandrasekaran’s decision not to seek an extension of his tenure as chairman after a board member opposed the proposal for his reappointment.
According to Chandrasekaran, the prolonged uncertainty surrounding the issue made it necessary for the board to move forward with succession planning.
In a statement, Chandrasekaran said he had completed four decades of professional life within the Tata Group and described his nearly ten-year stint as chairman of Tata Sons as both a privilege and a significant responsibility.
(IANS)
