Tata Group Firms Lose $4 Billion in Market Value Amid Holding Company Dispute

Shares of several listed Tata Group companies fell sharply on Friday, wiping around $4 billion from their combined market value, as investors reacted to growing uncertainty over the future listing and leadership of holding company Tata Sons. The selloff followed Tata Sons’ decision to reappoint N. Chandrasekaran as chairman for another five years and move toward compliance with RBI rules that could require a listing.

The developments have intensified a dispute between Tata Sons and its largest shareholder, Tata Trusts, over governance, succession and the proposed listing. Tata Trusts, which holds a 66% stake, has opposed the listing and described Chandrasekaran’s reappointment as illegal under Tata Sons’ articles. Meanwhile, the Shapoorji Pallonji Group, Tata Sons’ second-largest shareholder, has backed a potential listing.

Tata Consultancy Services shares fell 3.88%, while Tata Chemicals declined 11.04% and Tata Motors Passenger Vehicles dropped 3.4%. Tata Elxsi, Tata Investment Corporation and Tata Steel also ended lower. However, Tata Capital, Tata Power and Tata Motors gained during the session. Reuters calculations based on exchange data showed that about ₹383.61 billion ($4 billion) was erased from the combined market value of listed Tata Group companies.

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