Shares of Tata Group companies will remain in focus on Thursday after NCLAT restored ousted Tata Sons chairman Cyrus Mistry. Tata group shares such as Tata Consultancy Services (TCS), Tata Steel, Tata Motors, Tata Power, Tata Chemicals, Voltas, Titan and Indian Hotels, will be closely watched on Thursday as the NCLAT order came after market hours on Wednesday, December 18, 2019.
In a huge blow to the Tata group, the National Company Law Appellate Tribunal (NCLAT) on Wednesday ordered restoration of Cyrus Mistry as the Executive Chairman of Tata Sons. The judgement renders N Chandrasekaran's appointment as executive chairman of the company illegal. Chandrasekaran had been appointed the chairman of Tata Sons in February 2017.
Tata Sons is the principal investment holding company and the promoter of its group operating companies.
A two-member NCLAT bench headed by chairperson Justice S J Mukhopadhaya announced its judgement over the petitions moved by Mistry and the two investment firms challenging his removal from the group. Mistry, a scion of the wealthy Shapoorji Pallonji family that owns a minority stake in Tata Sons, was removed as Tata Sons' executive chairman on October 24, 2016.
The appellate tribunal has given four weeks to implement its order, while the Tata has the option to challenge the ruling in the Supreme Court. The NCLAT has granted a suspension of parts of the order as there will be no immediate change at Tata Sons on account of this tribunal decision. "Mistry will be able to join back the office only if Supreme Court doesn't stay the order after the leave," said legal sources.
The move is likely to add a new headache for the steel-to-software group, which faces business challenges and the impact of slowing economy.
On Wednesday, TCS, the second most valued firm by market valuation, shares closed 0.07 per cent higher at Rs 2,167.25 apiece on the Bombay Stock Exchange. The stock ended at Rs 2,166.80, up 0.09 per cent, on the National Stock Exchange.
Among others, Tata Motors ended 3.05 per cent lower at Rs 174.70 apiece, followed by Tata Steel (up 1.16 per cent at Rs 444), Tata Power Company (down 0.98 per cent at Rs 55.50), Titan Company (up 0.09 per cent at Rs 1,159.35) and Voltas (down 2.26 per cent at Rs 654).
Meanwhile, the BSE Sensex closed today's trade at 41,558.57, up by 206.4 points or by 0.5 per cent.
Edited by Chitranjan Kumar