Shares across Tata Group companies plummeted by over ₹68,000 crore following N. Chandrasekaran’s decision not to seek a new term as chairman, sparking investor concerns about future leadership andgroup stability.
Shares in Tata Group companies came under heavy pressure on August 12 after N. Chandrasekaran said he would not seek another term as chairman of Tata Sons, triggering a broad sell-off that erased more than ₹68,000 crore in combined market value across the group’s 17 listed firms. According to market data reported by Moneycontrol and Business Standard, the group’s total listed value fell to ₹26.32 lakh crore from nearly ₹27 lakh crore in the previous session.
Tata Consultancy Services bore the brunt of the decline. Its market capitalisation dropped by ₹42,440 crore after the stock fell sharply, making the IT services giant the biggest drag on the conglomerate’s overall valuation. Titan was next, while Tata Motors Passenger Vehicles and Tata Steel also posted sizeable losses in market worth, reflecting a wider reassessment by investors of the group’s near-term leadership outlook.
Other Tata companies, including Tata Consumer Products, Tata Power, Indian Hotels, Tata Communications, Tata Elxsi, Trent, Tata Investment Corporation and Tejas Networks, also finished lower. A handful of stocks, however, resisted the rout. Tata Motors, Tata Capital, Tata Chemicals and Voltas ended the session with modest gains, helping to offset only a small part of the broader erosion.
In a statement, Chandrasekaran said he had spent four decades with the Tata Group and described his nearly 10-year run as chairman of Tata Sons as both a privilege and a serious responsibility. He said the prolonged uncertainty around the succession issue meant the board needed to move ahead with planning, after a board member opposed the proposal for his reappointment.
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