Shares of various Tata Group companies on Wednesday plunged up to 4% after the National Company Law Appellate Tribunal (NCLAT) restored Cyrus Mistry as Tata Sons Chairman.
Tata Global Beverages tanked 4.14%, Tata Coffee plunged 3.88% and Tata Motors dropped 3.05% on the BSE. Tata Motors was the top loser among the BSE Sensex constituents.
Also, Indian Hotels Company dipped 2.48%, Tata Chemicals fell 1.65%, Tata Investment Corporation 1.22% and Tata Power Company 0.98%.
In contrast, Tata Consultancy Services stock rose marginally by 0.07%, Tata Metaliks gained 2.07%, Tata Communications 1.68%, Tata Elxsi 1.53%, Tata Steel 1.16% and Titan Company 0.09%.
In a big win for Cyrus Mistry, the NCLAT on Wednesday restored him as executive chairman of Tata Sons and ruled that appointment of N Chandrasekaran as the head of the holding company of salt-to-software conglomerate was illegal.
Setting aside a lower court order, the National Company Law Appellate Tribunal (NCLAT) also quashed the conversion of Tata Sons into a private company from a public firm.
He was the sixth chairman of Tata Sons and had taken over in 2012 after Ratan Tata. He was later also removed as a director on board of Tata Sons.
However, Mistry and Tata family patriarch Ratan Tata had reportedly falling out over key investment decisions, including manufacturing of world’s cheapest car Nano.
The NCLAT however stayed the operation of the order with respect to reinstatement for four weeks to allow Tatas to appeal.
Mistry, a scion of wealthy Shapoorji Pallonji family, was in a coup removed as Chairman of Tata Sons in October 2016.
Mistry, whose family owns 18.4% stake in Tata Sons, challenged his removal in the National Company Law Tribunal (NCLT).