India's Tata Group Shareholder Dispute Sends Stocks Tumbling

By Kimberley Kao

Shares of Tata Group companies fell broadly as a public boardroom dispute put the future of one of India's oldest and most prominent business groups back in the spotlight.

Tata Sons' board on Thursday moved to comply with Reserve Bank of India rules that could require the group's holding company to list, and sought to reappoint N. Chandrasekaran as chairman for a five-year term.

Friday's decline came after Tata Trusts, the largest shareholder in Tata Sons, opposed both a public listing of the holding company and Chandrasekaran's reappointment as chairman, calling the latter move illegal under the Articles of Association.

Given that the chair of the Tata Trust, Noel Tata, voted against the resolution regarding the reappointment, the decision was a "legal nullity," it said.

Chandrasekaran had resigned in August, saying then that he decided not to seek reappointment, as Tata Sons' board failed to reach a resolution on the matter.

Tata Trusts also said Thursday that Tata Sons' second-largest shareholder, Shapoorji Pallonji Group, had proposed to monetize part of its stake through a two-tranche share buyout over 18 months that could yield a gross consideration of 250 billion rupees, equivalent to $2.61 billion.

Tata Sons, the group's principal investment holding company, has business interests spanning consumer products such as salt, telecommunications, technology, steel, automobiles and aviation.

The group owns Jaguar Land Rover, Britain's largest automotive manufacturer, and Air India.

Later in a statement, Shapoor Mistry, chairman of SP Group, backed a potential Tata Sons listing and sought to ease tensions.

"The path forward is clear," Mistry said of the RBI's requirements relating to Tata Sons' listing.

"The listing of Tata Sons can become a bridge. A bridge between shareholders and Trusts, between private heritage and public accountability," Mistry said.

On Friday, shares of Tata Consultancy Services ended 4.3% lower, while Tata Chemicals slumped 11%, and Tata Investment shed 2.65%.

Tata Motors Passenger Vehicles dropped 3.45% and Tata Technologies lost 4.65%.

"I have repeatedly said that the public listing of Tata Sons is not merely a financial or regulatory matter...It is about strengthening transparency and public accountability in one of India's most consequential business institutions," Mistry said.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

September 18, 2026 08:05 ET (12:05 GMT)