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Cyrus Mistry’s ouster: Tata stocks extend fall, lose Rs 21,000 crore

By PTI Updated: Oct 27, 2016 12:13 am

NEW DELHI, October 26: Key Tata Group firms lost over Rs 10,000 crore for the second day on Wednesday, extending the total erosion in market capitalisation to more than Rs 21,000 crore following Cyrus Mistry’s ouster as Tata Group chairman.
These firms had lost about Rs 10,700 crore on Tuesday.
Shares of Tata Motors dipped 4.27 per cent, Tata Steel slumped 4.01 per cent, Tata Power lost 2.06 per cent and TCS fell by 0.07 per cent on BSE on Wednesday.
Besides, Tata Metaliks slipped 3.85 per cent, Tata Elxsi dropped 3.15 per cent, Tata Global Beverages (3.10%), Tata Chemicals (2.83%), Tata Communications (2.68%), Tata Sponge Iron (0.57%) and Tata Coffee (0.42%).
Tata Group overall commands market capitalisation of over USD 125 billion (close to Rs 8.5 lakh crore), with software giant TCS alone accounting for Rs 4,72,301.73 crore.In the stock market, the BSE benchmark Sensex too fell by 254.91 points to end at 27,836.51.
Mistry’s family firm Shapoorji Pallonji Group has 18.4 per cent in Tata Sons — the holding firm of the group companies.
In the surprise development, the board of Tata Sons, where 66 per cent shares are held by philanthropic trusts endowed by members of the Tata family, ousted Chairman Mistry, saying it was acting “for the long-term interest” of the firm.
His predecessor Ratan Tata has been made the interim chairman and a committee has been set up to look for a new head of the USD 100 billion conglomerate.
Sacked unceremoniously, a “shocked” Cyrus Mistry has levelled a series of allegations against Ratan Tata and contended that he was pushed in to a position of “lame duck” chairman and changes in decision making process created alternate power centres in Tata Group.

By PTI Updated: Oct 27, 2016 12:13:22 am