Shares of different Tata group firms on Thursday recovered, gaining up to 3 per cent at the close after NCLAT’s ruling to restore Cyrus Mistry as chairman of the group sent the stocks down yesterday. The shares of the group companies were under pressure till early intraday trade, plunging by up to 2 per cent. However, the companies closed with gains after buying increased in the later part of the trade. Tata Consultancy Services climbed 2.83 per cent, Tata Motors jumped 2.55 per cent, Tata Coffee rose 0.98 per cent, Tata Global Beverages 0.67 per cent, Tata Steel 0.48 per cent, Tata Metaliks gained marginally 0.17 per cent, Titan Company 0.07 per cent and Tata Communications 0.01 per cent on the BSE. Despite most of the Tata companies rebounding, Indian Hotels Company fell 2.03 per cent, Tata Elxsi went lower by 1.40 per cent and Tata Investment Corporation declined 0.43 per cent.
On Wednesday, the National Company Law Appellate Tribunal (NCLAT) restored Cyrus Mistry as executive chairman of Tata Sons. Since the restoration order will be operational after four weeks, Tatas have a time of four weeks to file an appeal. In addition, the tribunal held that the subsequent appointment of N Chandrasekaran as the executive chairman is illegal, the report added. NCLAT also quashed the conversion of Tata Sons into a private company from a public firm.
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The appellate tribunal was scheduled to pronounce its judgment over the petition moved by Cyrus Mistry and the two investment firms challenging his removal from the group. Former Tata Group chairman Cyrus Mistry, the sixth chairman of Tata Sons, was removed from the position in October 2016. After Ratan Tata announced his retirement, Cyrus Mistry took over as the chairman of the group in 2012.
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Source: Financial Express