Tata Group stocks tumble after Tata Trusts rejects Tata Sons listing, Chandrasekaran's reappointment

Tata Group stocks tumbled on Friday after Tata Trusts was against the possibility of Tata Sons listing and called the reappointment of N Chandrasekaran as Tata Sons chairman as illegalGroups stocks trade lowerShares of Tata Chemicals plunged 866 per cent to Rs 71285 while Tata Investment Corporation declined 348 per cent to trade at Rs 694 Tata Consultancy Services TCS slipped to Rs 213010 3 per cent lower on the BSESimilarly Titan stock was down 156 per cent at Rs 478300 while Tata Motors Passenger Vehicles TMPV fell 296 per cent to Rs 30535 and Tata Motors was at Rs 43285 registering a fall of 073 per cent from the previous closeTata Elxsi which hit a 52week low of 332530 was trading at Rs 335145 per share a decline of 099 per cent from its previous close Tata Power fell 037 per cent at Rs 36695 and Tata Steel was at Rs 18720 043 per cent lowerTata Trusts calls Chandrasekarans appointment illegalTata Sons on Thursday had reappointed Chandrasekaran as the Chairman for another five years however Tata Trusts Chairman Noel Tata had voted against this at the companys board meetingTata Trusts which together with affiliated trusts controls about 66 per cent of Tata Sons had described the resolution as a legal nullity arguing that the companys Articles of Association require both Trustnominated directors to support a chairmanship resolution The Trusts said the resolution was rendered legally void and without any basis as Noel Tata had voted against itMoreover the board had agreed to move ahead with the proposed listing of Tata Sons the holding company of the USD 180 billion Tata conglomerate which was also rejected by Noel TataNoel Tata had asked the holding company to explore other options apart from listing stating that the Reserve Bank of India in its communication while rejecting the companys application to surrender its core investment company registration had not mentioned listing He added that the regulator has not prescribed any particular step nor has it said the company is in breachWhat its legal effect is and what it requires of this Company and by when are questions upon which thisBoard has formed no view he saidTata Trust Chairman Noel Tata has pushed for the holding group company to remain private saying that the listing will destroy its characterThat is not sentiment It is the operating model of this House and it has stood the test of time for more than a century A listing will destroy its character and strike at the heart of this principle he saidThe Groups stocks had rallied on Thursday post the boards decision to reappoint Chandrasekaran and the listing planWhy was Tata Sons listing discussedThe proposed listing of Tata Sons was discussed at the board meeting after the Reserve Bank of India rejected its application to surrender its core investment company registration Tata Sons had sought deregistration in March 2024 after becoming debt free to avoid the listing requirement that applies to upper layer non banking financial companies NBFCs However the regulators decision means the holding company faces the mandatory listing