Tata Group stocks rally; Tata Chemicals jumps nearly 7% after Chandrasekaran gets third term

Tata Group stocks ended higher on Thursday, with Tata Chemicals surging nearly 7 per cent, after Tata Sons Ltd's board approved a fresh five-year term for N Chandrasekaran as executive chairman and set in motion the process to list the group's holding company.

Shares of Tata Chemicals jumped 6.60 per cent, Tata Investment Corporation rallied 5.47 per cent, Tata Motors Passenger Vehicles surged 4.52 per cent, Tata Steel climbed 2.82 per cent, Tata Power was up 2.02 per cent, Tata Consumer Products edged higher by 1.17 per cent, Rallis India 0.89 per cent, Trent 0.86 per cent, Tata Elxsi 0.49 per cent, Voltas 0.42 per cent and TCS rose 0.21 per cent on the BSE.

Chandrasekaran gets fresh five-year term

The board's roughly three-hour meeting in Mumbai came weeks after Chandrasekaran, 63, told directors in August that he did not intend to seek reappointment when his current term ends on February 20, 2027.

"At the meeting of the Board on September 17, 2026, Chandra acceded to the Board’s request to reconsider his decision. The Board thereafter resolved by a majority vote to re-appoint him as Executive Chairman for a further term of five years upon the expiry of his current tenure.

"The Board also resolved to initiate steps to comply with the applicable RBI Guidelines and will seek guidance from RBI, Tata Trusts and other stakeholders on applicable compliance requirements," Tata Sons said in a statement.

Tata Sons listing process set in motion

The board agreed to move ahead with the listing of Tata Sons, the holding company of the salts-to-software-and-cars group.

Both the decisions, which the Tata Trusts termed as "illegal", will have to be approved at the company's AGM.

However, Tata Trusts maintained that the resolution to re-appoint Chandrasekaran as Chairman of Tata Sons "is illegal position," reiterated at the Tata Sons Board meeting by Tata Trusts Chairman Noel N Tata, following a move to revisit Chandrasekaran's reappointment; Selection Committee to proceed in accordance with the Articles of Association.

RBI decision revives listing prospect

The shift in the board's position follows the Reserve Bank of India's rejection last week of Tata Sons' application to surrender its registration as a non-banking financial company - a decision that revives the prospect of a stock market listing the company had spent more than a year trying to avoid, including by repaying more than Rs 21,000 crore in debt.