The case relates to two-year-old feud between Tata Sons and Cyrus Mistry, who was axed as Tata Son's chairman on October 24, 2016.
NEW DELHI: The much-awaited verdict of the National Company Law Tribunal (NCLT) on the Tata-Mistry battle later today might set a landmark precedent for corporate feuds, but the Tata businesses have since taken it all in their stride and moved on.
Total market capitalisation of 26 listed Tata companies has risen 30 per cent to Rs 10.86 lakh crore, from Rs 8.34 lakh crore on October 24, 2016, with TCS alone contributing 54 per cent of this rise.
Data compiled from corporate database Ace Equity show that major group firms such as TCS (up 54 per cent), Titan Company (up 153 per cent) and Tata Steel (up 39 per cent) have outperformed the benchmark indices during this period while others like Tata Motors, Tata Power and Tata Communications have slid up to 51 per cent.
Some 13 other group company stocks have underperformed the Sensex’s 25 per cent rise during the same period.
Justices BSV Prakash Kumar and V Nallasenapathy of the Mumbai bench of National Company Law Tribunal (NCLT) will pronounce the verdict in the matter later on Wednesday.
ADVERTISEMENT
The case relates to two-year-old feud between Tata Sons and Cyrus Mistry, who was axed as Tata Sons chairman on October 24, 2016.
Market analysts and observers say the Tata Group did not see any turnaround under Mistry, as was widely expected, and except for TCS and to some extent Tata Motors, almost all other businesses of the conglomerate, including Tata Steel, actually went downhill under him.
The Mistry camp claims that Cyrus' removal as chairman and subsequently as director on the board Tata Sons was the result of oppression by the promoters, led by Tata Trusts, ET reported. The trust owns over 68 per cent in Tata Sons. The Mistry family owns 18.6 per cent stake in Tata Sons, but has only 4 per cent voting rights.
Tata-Mistry fight: The D-day is here
1/11
It's judgement day for Cyrus Mistry, the ousted chairman of Tata Sons. The Mumbai bench of the National Company Law Tribunal is slated to pronounce its verdict on the much publicised Tata-Mistry battle later today. Whichever way the verdict goes, one thing is clear. It will set a precedent on corporate feuds, particularly for promoter-led firms.
It's judgement day for Cyrus Mistry, the ousted chairman of Tata Sons. The Mumbai bench of the National Company Law Tribunal is slated to pronounce its verdict on the much publicised Tata-Mistry batt..
Read More
His dismissal as the chairman of the Tata Sons on October 24, 2016, has set off this chain of events. Mistry on his part has a host of allegations. He has also termed the changes to the articles of association since his dismissal from office as "arbitrary".
His dismissal as the chairman of the Tata Sons on October 24, 2016, has set off this chain of events. Mistry on his part has a host of allegations. He has also termed the changes to the articles of a..
Read More
Mistry sees his removal as the chairman and subsequently director of the board as a result of oppression by the promoters, who are in turn owned by Tata Trusts that owns over 68 per cent in Tata Sons.
Mistry sees his removal as the chairman and subsequently director of the board as a result of oppression by the promoters, who are in turn owned by Tata Trusts that owns over 68 per cent in Tata Sons
Mistry's Cyrus Investments, the key investment vehicle of the Mistry family and the key petitioner, shot off a letter to the Directors of Tata Sons on June 30. He has demanded accountability and information from the board of Tata Sons, in which his family owns 18.34 per cent.
Mistry's Cyrus Investments, the key investment vehicle of the Mistry family and the key petitioner, shot off a letter to the Directors of Tata Sons on June 30. He has demanded accountability and info..
Read More
Mistry is blunt. He has accused Tata Sons of "hiding behind the veneer of media management to present a rosy picture” despite staring at several burning issues.
Mistry is blunt. He has accused Tata Sons of "hiding behind the veneer of media management to present a rosy picture” despite staring at several burning issues.
Mistry had moved the NCLT in December 2016. The bench had dismissed his petition early 2017 citing eligibility clause, which was challenged at the NCLAT in New Delhi, which had asked the bench to hear the matter afresh.
Mistry had moved the NCLT in December 2016. The bench had dismissed his petition early 2017 citing eligibility clause, which was challenged at the NCLAT in New Delhi, which had asked the bench to hea..
Read More
The letter asks the directors to satisfy themselves that transactions that Tata Motors has entered into with Jayem Auto and Ola are at 'arm's length' and 'value accretive', given that these companies have investments from Ratan Tata.
The letter asks the directors to satisfy themselves that transactions that Tata Motors has entered into with Jayem Auto and Ola are at 'arm's length' and 'value accretive', given that these companies..
Read More
Mistry is taking Tata Steel to task for what he sees massive debt-driven expansion and its doomed acquisition of Corus, which later nearly sunk the parent company. Also on his grouse list is potential debt burden arising from the Rs 80,000-crore capex needed for acquiring Bhushan Steel (Rs 35,000 crore), Bhushan Power & Steel (Rs 24,000 crore through the NCLT) as well as the Rs 23,000-crore expansion of Kalinganagar project.
Mistry is taking Tata Steel to task for what he sees massive debt-driven expansion and its doomed acquisition of Corus, which later nearly sunk the parent company. Also on his grouse list is potentia..
Read More
The management also has some explaining to do for the "deteriorating performance" of Tata Steel Europe that compromised a deal with Thyssenkrupp, which was initially meant to be an equal joint venture but was finally sealed as 45:55 JV.
The management also has some explaining to do for the "deteriorating performance" of Tata Steel Europe that compromised a deal with Thyssenkrupp, which was initially meant to be an equal joint ventur..
Read More
He also railed against the clean chit given by the Tata Sons board to R Venkataramanan, its nominee on the AirAsia India board and the managing trustee of Tata Trusts, "without conducting any known independent investigation".
He also railed against the clean chit given by the Tata Sons board to R Venkataramanan, its nominee on the AirAsia India board and the managing trustee of Tata Trusts, "without conducting any known i..
Mistry also raised concerns over alleged mismanagement by Tata Sons board and Ratan Tata, which he claimed caused loss of revenue to the group.
ADVERTISEMENT
Market veteran Deven Choksey of KRChoksey last week told ETNow that the Tatas would probably like to make TCS, Tata Motors and Tata Steel stronger than what they are currently.
"In the case of TCS, in particular, the possibilities hereafter could be that they may try to create digital platform-based services for some of the verticals. They are extremely strong in BFSI, strong in healthcare and telecom and I think if they adopt the vertical-based software and service approach, they start growing further. I would think TCS would possibly lead wealth creation over time, if not over the next 12 months,” he added.
ADVERTISEMENT
This April, TCS became India’s first company to enter the $100 billion club in market capitalisation. Under new Group Chairman N Chandrasekaran, TCS has seen "enormous" growth over the years. In a message to shareholders, he told ETNow in April, “TCS will continue to prosper.”
Analysts currently find Tata Motors attractive, purely based on valuations. The carmaker’s domestic market portfolio has started doing better again after a long bad spell, Choksey said.
Tata Steel is expected to get a thrust from India's infrastructure-related growth and its recent acquisition of Bhushan Steel, which could ensure higher profits for the company going forward, Choksey told ETNow last week.
It's judgement day for Cyrus Mistry, the ousted chairman of Tata Sons. The Mumbai bench of the National Company Law Tribunal is slated to pronounce its verdict on the much publicised Tata-Mistry battle later today. Whichever way the verdict goes, one thing is clear. It will set a precedent on corporate feuds, particularly for promoter-led firms.
It's judgement day for Cyrus Mistry, the ousted chairman of Tata Sons. The Mumbai bench of the National Company Law Tribunal is slated to pronounce its verdict on the much publicised Tata-Mistry batt..
Read More
His dismissal as the chairman of the Tata Sons on October 24, 2016, has set off this chain of events. Mistry on his part has a host of allegations. He has also termed the changes to the articles of association since his dismissal from office as "arbitrary".
His dismissal as the chairman of the Tata Sons on October 24, 2016, has set off this chain of events. Mistry on his part has a host of allegations. He has also termed the changes to the articles of a..
Read More
Mistry sees his removal as the chairman and subsequently director of the board as a result of oppression by the promoters, who are in turn owned by Tata Trusts that owns over 68 per cent in Tata Sons.
Mistry sees his removal as the chairman and subsequently director of the board as a result of oppression by the promoters, who are in turn owned by Tata Trusts that owns over 68 per cent in Tata Sons
Mistry's Cyrus Investments, the key investment vehicle of the Mistry family and the key petitioner, shot off a letter to the Directors of Tata Sons on June 30. He has demanded accountability and information from the board of Tata Sons, in which his family owns 18.34 per cent.
Mistry's Cyrus Investments, the key investment vehicle of the Mistry family and the key petitioner, shot off a letter to the Directors of Tata Sons on June 30. He has demanded accountability and info..
Read More
Mistry is blunt. He has accused Tata Sons of "hiding behind the veneer of media management to present a rosy picture” despite staring at several burning issues.
Mistry is blunt. He has accused Tata Sons of "hiding behind the veneer of media management to present a rosy picture” despite staring at several burning issues.
Mistry had moved the NCLT in December 2016. The bench had dismissed his petition early 2017 citing eligibility clause, which was challenged at the NCLAT in New Delhi, which had asked the bench to hear the matter afresh.
Mistry had moved the NCLT in December 2016. The bench had dismissed his petition early 2017 citing eligibility clause, which was challenged at the NCLAT in New Delhi, which had asked the bench to hea..
Read More
The letter asks the directors to satisfy themselves that transactions that Tata Motors has entered into with Jayem Auto and Ola are at 'arm's length' and 'value accretive', given that these companies have investments from Ratan Tata.
The letter asks the directors to satisfy themselves that transactions that Tata Motors has entered into with Jayem Auto and Ola are at 'arm's length' and 'value accretive', given that these companies..
Read More
Mistry is taking Tata Steel to task for what he sees massive debt-driven expansion and its doomed acquisition of Corus, which later nearly sunk the parent company. Also on his grouse list is potential debt burden arising from the Rs 80,000-crore capex needed for acquiring Bhushan Steel (Rs 35,000 crore), Bhushan Power & Steel (Rs 24,000 crore through the NCLT) as well as the Rs 23,000-crore expansion of Kalinganagar project.
Mistry is taking Tata Steel to task for what he sees massive debt-driven expansion and its doomed acquisition of Corus, which later nearly sunk the parent company. Also on his grouse list is potentia..
Read More
The management also has some explaining to do for the "deteriorating performance" of Tata Steel Europe that compromised a deal with Thyssenkrupp, which was initially meant to be an equal joint venture but was finally sealed as 45:55 JV.
The management also has some explaining to do for the "deteriorating performance" of Tata Steel Europe that compromised a deal with Thyssenkrupp, which was initially meant to be an equal joint ventur..
Read More
He also railed against the clean chit given by the Tata Sons board to R Venkataramanan, its nominee on the AirAsia India board and the managing trustee of Tata Trusts, "without conducting any known independent investigation".
He also railed against the clean chit given by the Tata Sons board to R Venkataramanan, its nominee on the AirAsia India board and the managing trustee of Tata Trusts, "without conducting any known i..
Tata-Mistry verdict and the other long drawn battles within Indian Industry
