Cyrus Mistry’s ouster depletes Rs 17,000 Crore in market value of 5 Tata firms
Mumbai,Oct26:Just the top five listed companies of the Tata group in terms of market value have lost nearly Rs 17,000 crore in two trading sessions since Cyrus Mistry was removed from the post of chairman of Tata Sons, the holding company of India’s biggest conglomerate.
Mr Mistry’s surprise removal has shocked markets and shares of most Tata companies have shown a decline in the last two days.
The ouster of the 48-year-old Mr Mistry and the disbanding of his advisory team may distract the salt-to-software conglomerate from its efforts to trim debt and reshape some of its businesses, say analysts.
Under Mr Mistry, the Tata Group has taken “significant steps towards deleveraging and better utilization of capital,” Citigroup said, adding that his absence may impact the group’s future strategy and delay the process of bringing down the debt levels.
Shares of IT bellwether TCS, which has the maximum market cap among the Tata group companies, have lost 1.6 per cent in two days, leading an erosion of Rs 7,788 crore in market value. Similarly, Tata Motors has lost Rs 6,100 crore in market value (including DVR shares) in two days.
Of the other Tata group companies, Tata Steel, Titan, Tata Power have suffered a loss of Rs 1,431 crore, Rs 906 crore, and Rs 607 crore respectively in market value in last two days.
Ratan Tata has been handed interim charge while the group looks for a new chairman. He told top CEOs of the group yesterday that they should not worry about the changes in leadership, and must focus instead on business and making their companies market leaders.
Tata Sons yesterday appointed Jaguar Land Rover chief executive officer Ralf Speth and Tata Consultancy Services CEO and managing director N Chandrasekaran as additional directors.