Tata Chemicals, Tata Investment Corp shares fall up to 3% as boardroom battle likely to reach court

Tata Group stocks dropped in early trade on Monday as the corporate battle between Tata Trusts and Tata Sons over the latter’s reappointment of N Chandrasekaran as Chairman intensified further, likely to now hit the doors of a courtroom.

In today's session, Tata Chemicals dipped over 3% to their day's low of Rs 670, while Tata Investment Corp slipped nearly 2%. Tata Steel, Tata Motors PV, TCS and other Group stocks traded in the red with marginal losses, before few of them recovered most of them.

The shares of the companies saw sharp upswings and downswings earlier last week after Tata Sons approved a fresh five-year extension for Chairman N Chandrasekaran’s tenure and set the ball rolling for the much-awaited IPO of the group holding company. The shares of the Tata Group companies dropped on Friday after Tata Trusts labelled Chandrasekaran's appointment illegal.


Also read | Tata Sons IPO: How 7 Tata Group stocks performed this week amid IPO buzz

Tata Sons vs Tata Trusts: What we know so far

In a strongly worded letter on Friday, Tata Trusts chairman Noel Tata challenged the validity of the decision. “I write in my capacity as the chairman of Tata Trusts and a nominee director on the board of Tata Sons to place on record my serious disappointment and indeed my strong objection at the conduct of the meeting of the company today,” Tata wrote in the letter, the contents of which were described to an ET reporter.

“I record that I maintain that the vote taken on the captioned matter (reappointment of the chairman) and any resolution claimed to have been passed is null and void ab initio and of no legal relevance, efficacy or effect whatsoever.”

Tata Trusts, which controls 66% of Tata Sons through the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust, passed a resolution in July 2025 seeking to keep the holding company privately owned. The Shapoorji Pallonji Group, Tata Sons’ largest minority shareholder with an 18.37% stake, meanwhile views a listing as the most practical way to unlock value.

Boardroom battle intensifies at Bombay House

Tata Trusts, headed by Noel Tata, may legally challenged Tata Sons board's decision to reappoint N Chandrasekaran as chairman, and seek judicial intervention to maintain the status quo on his tenure, as reported by ET.

Also read | Tata Sons vs Trusts may shift from boardroom to courtroom

Senior advocate Abhishek Singhvi, who has been appointed to represent Tata Trusts, on Sunday said he is entering the fray with "sadness and regret" as these issues could not be amicably solved. In a post on X, the lawyer said the fundamental rights of shareholder-owners cannot be nullified in the manner in which they have been.

"Having worked closely with Ratan Tata earlier, being aware of his legacy and not only knowing personally all the principal actors on both sides in the current so-called Tata dispute but also having deep, genuine and abiding respect for and excellent equations with all of them, my first reaction, as I enter the fray as the lead lawyer for one side, is one of sadness and regret that these issues could not be solved amicably," Singhvi said.

Tata Group stocks

The shares of the Tata Group companies saw sharp upswings and downswings last week following the developments in what appears to be one of the most watched boardroom battles this year so far. Tata Chemicals saw the wildest swings, overall gaining 13% during the week. Tata Investment Corp meanwhile gained 8% during the week.

Also read | Tata Sons IPO: Why Tata Chemicals may be the biggest beneficiary although Tata Motors, Tata Steel own bigger stake

Other Tata Group stocks that hold stake in Tata Sons, including Tata Motors Passenger Vehicles, Tata Steel and others, recorded modest gains of up to 2% last week.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.