Tata Investments shares surge 13%, supported by new updates on N Chandrasekaran's third term

News Topical, Digital Desk : Today, Thursday, Tata Investment Corporation's share price rose by 13% to reach a high of Rs 727.40 on the BSE. Actually, next week, the board of Tata Sons will approve the reappointment of N Chandrasekaran as the executive chairman for the third term, after which this decision will be ratified in an extraordinary general meeting (EGM). This move is considered important because Tata Sons has a majority stake in Tata Investment.
After this news came out, Tata Investment's share has seen a tremendous rise today. At around 11:45 am, it is at Rs 709.35 on the BSE, with a rise of Rs 65.30 or 10.14%.

Changes being made to the rules

According to NSE data, Tata Sons holds a 68.51% stake in Tata Investments, as per the December quarter shareholding pattern. In Q3, the number of retail shareholders of Tata Investments Corp increased from 1.57 lakh to 2.35 lakh, an increase of 0.78 lakh.
The proposal to reappoint Chandrasekaran is a relaxation in the retirement policy applicable to non-executive roles after the age of 65. A similar relaxation was given in 2016 when Ratan Tata took over as chairman from Cyrus Mistry.

Tata Trusts has already given its approval.

Tata Trusts, the majority shareholder of the Tata Group's holding company, unanimously passed a resolution in October last year to reappoint Chandrasekaran to an executive role. According to media reports, the top management of Tata Consultancy Services (TCS) will make a presentation on its artificial intelligence pivot to the Tata Sons board next week.

Tata Investments share performance

• Based on the current price, Tata Investments shares have jumped 12% in the last 5 days.
• It has jumped 8.75 percent in a month.
• Its rate has gone up by only 2.6 percent in 6 months.
• It has achieved a growth of 19.2 percent in 1 year.

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