Tata Group stocks dropped in early trade on Monday as the corporate battle between Tata Trusts and Tata Sons over the latter’s reappointment of N Chandrasekaran as Chairman intensified further, likely to now hit the doors of a courtroom.
In today's session, Tata Chemicals dipped over 3% to their day's low of Rs 670, while Tata Investment Corp slipped nearly 2%. Tata Steel, Tata Motors PV, TCS and other Group stocks traded in the red with marginal losses, before few of them recovered most of them.
The shares of the companies saw sharp upswings and downswings earlier last week after Tata Sons approved a fresh five-year extension for Chairman N Chandrasekaran’s tenure and set the ball rolling for the much-awaited IPO of the group holding company. The shares of the Tata Group companies dropped on Friday after Tata Trusts labelled Chandrasekaran's appointment illegal.
Also read | Tata Sons IPO: How 7 Tata Group stocks performed this week amid IPO buzz
Tata Sons vs Tata Trusts: What we know so far
In a strongly worded letter on Friday, Tata Trusts chairman Noel Tata challenged the validity of the decision. “I write in my capacity as the chairman of Tata Trusts and a nominee director on the board of Tata Sons to place on record my serious disappointment and indeed my strong objection at the conduct of the meeting of the company today,” Tata wrote in the letter, the contents of which were described to an ET reporter.
“I record that I maintain that the vote taken on the captioned matter (reappointment of the chairman) and any resolution claimed to have been passed is null and void ab initio and of no legal relevance, efficacy or effect whatsoever.”
Tata Trusts, which controls 66% of Tata Sons through the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust, passed a resolution in July 2025 seeking to keep the holding company privately owned. The Shapoorji Pallonji Group, Tata Sons’ largest minority shareholder with an 18.37% stake, meanwhile views a listing as the most practical way to unlock value.
Boardroom battle intensifies at Bombay House
Tata Trusts, headed by Noel Tata, may legally challenged Tata Sons board's decision to reappoint N Chandrasekaran as chairman, and seek judicial intervention to maintain the status quo on his tenure, as reported by ET.
Also read | Tata Sons vs Trusts may shift from boardroom to courtroom
Senior advocate Abhishek Singhvi, who has been appointed to represent Tata Trusts, on Sunday said he is entering the fray with "sadness and regret" as these issues could not be amicably solved. In a post on X, the lawyer said the fundamental rights of shareholder-owners cannot be nullified in the manner in which they have been.
"Having worked closely with Ratan Tata earlier, being aware of his legacy and not only knowing personally all the principal actors on both sides in the current so-called Tata dispute but also having deep, genuine and abiding respect for and excellent equations with all of them, my first reaction, as I enter the fray as the lead lawyer for one side, is one of sadness and regret that these issues could not be solved amicably," Singhvi said.
