Tata stocks plunge on concerns over Mistry letter
Tata Sons on Monday removed Cyrus Mistry as its chairman, four years after he took over the conglomerate. Photograph: (AFP)
Shares of various Tata group stocks, including Tata Power and Tata Motors, plunged sharply this morning amid concerns about purported disclosure made by ousted group chairman Cyrus Mistry about huge write-down risks at some firms.
Tata Motors and Tata Power were down nearly 3 per cent each while Tata Steel was trading nearly 2 per cent down in early morning trade at BSE.
Indian Hotels and Tata Tele were down more than 7 per cent each.
Tata Chemicals, Tata Coffee, Tata Global Beverages, Tata Investment Corp, Tata Steel and TCS were also trading with losses.
Stock exchanges late last night sought clarifications from select Tata companies on reports about Mistry listing out possible write-down risk to the tune of USD 18 billion while the group stocks have been losing value for three days now amid concerns over sudden ouster of Mistry as chairman of Tata Sons, the main holding firm for the group companies.
Regulator Sebi and stock exchanges are keeping a close tab on share movement and trading volumes of all listed companies of the group.