Tata Stocks Gain On Report Of Leadership Revamp
Shares of all Tata Group companies rose after Bloomberg reported that Tata Sons Ltd., the parent of India’s largest conglomerate, is said to consider a revamp of its leadership structure by creating a chief executive officer’s role.
Under the plan being proposed, the CEO will guide the businesses of the holding company for the conglomerate, Bloomberg reported citing unnamed people engaged in the deliberations. The chairman will oversee the chief executive on behalf of shareholders, it said.
Other highlights from Bloomberg’s report:
The approval of Ratan Tata, the chairman of Tata Trusts, is being seen as key to implementing the change.
Current Chairman of Tata Sons, N Chandrasekaran is being considered for extension after his term ends in February, while heads of various Tata Group firms, including Tata Steel are being evaluation for the CEO position.
No final decision has been reached yet and the plan and details could still change.
Here's how Tata Group stocks moved after the report in a flat Mumbai market on Tuesday:
A spokesperson for Tata Sons declined to comment on Bloomberg’s queries. Emails to Tata Trusts and Ratan Tata were not answered, according to the report.