The stock closed at Rs 668 apiece, extending its losses for the second straight session. As per the company’s shareholding pattern as of December 31, Tata Sons held a 68.51% stake in Tata Investment Corporation.
Tata Trusts holds the largest stake in Tata Sons, the principal holding company of the Tata Group.
Why Cdid handrasekaran ask to defer discussions on reappointment?
The Tata Sons executive and former TCS CEO has asked for a deferment of the discussion after disagreements broke out in a board meeting, people familiar with the matter told The Economic Times.During the board meeting, which was held today, Tata Trusts Chairman Noel Tata raised the issue of losses made by the Tata Group’s new businesses, according to the report. Other board members, however, backed Chandrasekaran’s reappointment, stating that these losses should be treated as greenfield investments that need a gestation period to mature, the report further said.
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Noel Tata is a Tata Trusts nominee on the board of Tata Sons. Notably, Chandrasekaran’s current term does not expire immediately. His current term will expire in February 2027. It is also worthy to note that Chandrasekaran will turn 63 in June.
Tata Trusts Chairman Noel Tata reportedly put forth four conditions that the Tata Sons Chairman must meet before reappointment. One of the said conditions is that Tata Sons should not be listed, in accordance with the Reserve Bank of India guidelines for the so-called upper-layer shadow banks. Large conglomerates such as Tata Sons fall under this definition.
Another condition is that the Chairman must ensure the company has no debt. The third condition was to avoid excessive capital expenditure in high-risk investments, and the last and final requirement was to contain the losses arising from acquisitions like Air India and Big Basket.
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