Shares of 12 Tata Group companies slipped by 1.11 percent to 7.9 percent on BSE after Tata Sons, the holding company of the Tata Group, said its board of directors replaced Cyrus P. Mistry as chairman of Tata Sons.
The announcement was made after market hours yesterday, 24 October 2016.
Tata Metaliks (down 7.89 percent), Tata Steel (down 3.33 percent), Tata Communications (down 3.06 percent), Tata Global Beverages (down 2.63 percent), Tata Chemicals (down 2.17 percent), Tata Motors (down 2.1 percent), Tata Investment Corporation (down 1.91 percent), Tata Power (down 1.91 percent), Tinplate Company of India (down 1.73 percent), Tata Sponge Iron (down 1.35 percent), Tata Teleservices (Maharashtra) (down 1.33 percent)
and Tata Coffee (down 1.11 percent), edged lower. Rallis India was up 1 percent.
The S&P BSE Sensex was up 1.57 points, or 0.01 percent at 28,180.65.
The decision was taken at a board meeting held yesterday, 24 October 2016. The board named Ratan N. Tata as interim chairman of Tata Sons. The board has constituted a selection committee to choose a new chairman. The committee comprises Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons. The committee has been mandated to complete the selection process in four months.
Tata Sons is the promoter of the major operating Tata companies and holds significant shareholdings in these companies. About 66 percent of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The largest of these trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, which were created by the families of the sons of Jamsetji Tata, the Founder.
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