The group’s top performing company Tata Consultancy Services Ltd, however, remained muted in trade
The SC set aside the NCLAT order restoring Mistry as the executive chairman of the conglomerate, while allowing appeals filed by the Tata Group
Mumbai: Shares of top Tata group companies such as Tata Motors Ltd, Tata Steel Ltd, Tata Power Co. Ltd, Tata Consumer Products Ltd and Titan Co. Ltd soared 2-6% on Friday, as the Supreme Court (SC) order in the protracted Tata-Mistry case lifted a cloud of uncertainty. However, shares of Tata Consultancy Services Ltd (TCS), the group’s crown jewel and the second-most valuable company in the Sensex, closed unchanged.
The Supreme Court on Friday set aside a 2019 National Company Law Appellate Tribunal (NCLAT) order that restored Cyrus Mistry as the executive chairman of Tata Sons Pvt. Ltd, while allowing appeals filed by the Tata group. In 2012, Mistry had succeeded Ratan Tata as chairman of Tata Sons but was ousted four years later, triggering a bitter legal battle. On 24 October 2016, Mistry was removed from his post of chairman of Tata Sons by the board.
Most listed Tata group firms have seen a strong rally after Mistry was ousted. A Mint analysis showed that 19 out of 28 Tata group stocks made strong returns in the period, while nine saw double-digit losses. Out of the total, 11 Tata stocks have outperformed the benchmark Sensex since Mistry’s exit. Tata Consumer Products, at 311%, is the biggest gainer among all Tata group stocks in the period, while the Sensex has gained 74.55%.
On 12 January 2017, Tata Sons had named N. Chandrasekaran as chairman, who was at the time chief executive officer and managing director of TCS.
Chandrasekaran’s four-year tenure as head of Tata Sons, having taken over from interim chairman Ratan Tata, has seen 21 group stocks giving positive returns.
Eleven stocks in the pack have outperformed the benchmark Sensex, which climbed 80.57%. The biggest Tata group company, TCS, gained 164.15% while Tata Consumer Products added 392.93%.
However, seven Tata stocks have seen negative returns after Chandrasekaran took charge. Tata Motors lost 42.90% in the period while TRF Ltd (down 61.55%) slipped the most.
During Chandrasekaran’s fourth year, one of the most critical periods as the covid-19 outbreak had led to massive business disruption, 19 stocks showed positive returns while 16 stocks outperformed the Sensex, which gained 18% in the period. Tata Teleservices (Maharashtra) Ltd climbed 312% and Tata Communications Ltd rose 166%, the biggest gainers in the fourth year of Chandrasekaran’s tenure. Both TCS and Tata Steel added 43% in this period while nine stocks slumped. Tata Motors gained 12%.
The Mistry family’s Shapoorji Pallonji (SP) Group holds an 18.37% stake in Tata Sons; a 65.89% stake is held by two separate Tata trusts; a 12.87% by operating firms of Tata group; and the rest by Ratan Tata and other individuals.
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