Tata Stocks Tumble After NCLAT Restores Cyrus Mistry As Tata Sons Chairman
While Tata Global Beverages, Tata Motors and Indian Hotels fell, TCS, Tata Steel and Titan rose after NCLAT’s verdict.
Shares of various Tata Group companies on Wednesday fell up to 4 percent after the National Company Law Appellate Tribunal restored Cyrus Mistry as the chairman of Tata Sons Ltd.
Tata Global Beverages Ltd. fell 4.14 percent, Tata Coffee Ltd. declined 3.88 percent and Tata Motors Ltd. dropped 3.05 percent on the Bombay Stock Exchange. Tata Motors was the top loser among the BSE Sensex constituents.
Indian Hotels Company Ltd. dipped 2.48 percent, Tata Chemicals Ltd. fell 1.65 percent, Tata Investment Corporation Ltd. 1.22 percent and Tata Power Company Ltd. 0.98 percent.
In contrast, Tata Consultancy Services Ltd. stock rose marginally by 0.07 percent, Tata Metaliks Ltd. gained 2.07 percent, Tata Communications Ltd. 1.68 percent, Tata Elxsi Ltd. 1.53 percent, Tata Steel Ltd. 1.16 percent and Titan Company Ltd. 0.09 percent.
The NCLAT on Wednesday restored Mistry as the executive chairman of Tata Sons and ruled that appointment of Natarajan Chandrasekaran as his replacement was illegal. The order will take effect after four weeks and Tata has the option to challenge the ruling in the Supreme Court.
Mistry, a scion of wealthy Shapoorji Pallonji family, was in a coup removed as Tata Sons chairman in October 2016. Mistry, whose family owns 18.4 percent stake in Tata Sons, challenged his removal in the National Company Law Tribunal.