The market valuation of the Tata Consultancy Services (TCS) in a week eroded by Rs 34,263.28 crore to Rs 8,53,506.85 crore. The development comes after the TCS Chairman, N Chandrasekaran has decided not to seek re-appointment tendering his resignation, a move coming days ahead of the company’s annual general meeting (AGM) on August 18.
N Chandrasekaran joined TCS in 1987 and rose through the ranks. He was later appointed as its chief executive officer and managing director in 2009, and was later appointed chairman of TCS in 2017.
According to the data by the depositories, the combined market valuation of five of the top-10 most valued firms eroded by Rs 1 trillion last week. TCS took the biggest hit, amid a bearish trend in domestic equities.
In the week gone by, Reliance Industries remained the most valued domestic firm. It was followed by Bharti Airtel, HDFC Bank, ICICI Bank, State Bank of India, TCS, Bajaj Finance, Larsen & Toubro, LIC and Hindustan Unilever.
TCS took Chandrasekaran step down heat
After N Chandrasekaran announced he will not take up the extension of chairmanship of Tata Sons, the Tata Group has lost nearly Rs 44,000 crore in market capitalisation.
The sell-off has been heavily concentrated in one stock — Tata Consultancy Services (TCS).
In two days time since his resignation, tThe combined market capitalisation of 26 listed Tata companies fell by Rs 43,812 crore to Rs 27.04 trillion from Rs 27.48 trillion on August 11. TCS alone accounted for 81 per cent, or Rs 35,421 crore, of the decline.
Tata Sons outgoing Chairman, N Chandrasekaran urged staff not to pay heed to “speculation and conspiracy theories” surrounding the leadership transition.
After his announcement in the morning over not to take the re-appointment as chairman, N Chandrasekaran addressed a town hall at Bombay House.
Chandrasekaran said he had been touched with the love and affection of employees over the years and reflected on his four decades with the Tata Group.