Tata group shares tumble as boardroom clash over Chandrasekaran's third term escalates

On Monday, a majority of Tata group equities opened lower, with Tata Chemicals falling 3% and other units such as NELCO and Tata Power losing around 2-3%. The decline follows a sharp disagreement between Tata Sons and its largest shareholder, Tata Trusts, over the board's 4:1 vote to grant N Chandrasekaran a third term as executive chairman. Tata Trusts labeled the resolution invalid and prepared to take the matter to court, a stance echoed by senior advocate Abhishek Manu Singhvi.

Noel Tata, representing the Trusts on the board, cast the sole dissenting vote. Market analysts noted that while individual businesses continue operating under their own CEOs, the overarching governance dispute could pressure the group's premium price-earnings ratios if it persists.