Shares of Tata Investment Corp rise 13% on rumors surrounding N Chandrasekaran’s third term at Tata Sons

Shares of Tata Investment Corporation rose as much as 13% to a day’s high of Rs 727.40 on the BSE on Thursday after The Economic Times exclusively reported that Tata Sons is preparing for an extraordinary general meeting (EGM) once the board approves the reappointment of N. Chandrasekaran as executive chairman for a third term next week, a year before his current term ends.The development takes on significance now that Tata Sons has a majority stake in Tata Investment. As per December share pattern, Tata Sons holds 68.51% stake in the company, NSE data shows. In the third quarter, Tata Investment Corp Ltd saw the number of retail shareholders rise from 1.57 lakh to 2.35 lakh, an addition of 0.78 lakh.

Also read: Tata Sons board all set to approve N Chandrasekaran’s third term, next EGM

The resolution constitutes an exception to the pension policy applicable to non-executive positions after the age of 65. A similar waiver was granted in 2016 when Ratan Tata succeeded Cyrus Mistry as chairman.

Tata Trusts, the majority shareholder of the holding company Tata Group, had already unanimously decided to reappoint Chandrasekaran to an executive role in October last year. In addition, the top management of Tata Consultancy Services (TCS) will make a presentation to the Tata Sons board next week on the artificial intelligence pivot, the report said.

This is aimed at addressing board concerns following the stock market sell-off of technology stocks, including TCS, amid rapid AI-led innovations. TCS is coming under increasing scrutiny as global AI developments, such as those of Claude Cowork, begin to threaten traditional business models for IT services.

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2025 was a challenging period for the group. Tata Sons said in its annual report that the year started with optimism, underpinned by expectations of macroeconomic stability and recovery in a context of global growth, slowing inflation and tailwinds from falling interest rates. However, this macro story changed as policy uncertainty rose sharply due to dramatic shifts in trade policy. Tata Sons posted a 24% increase in FY25 revenue to Rs 5.92 lakh crore, while net profit fell 17% to Rs 28,898 crore from a year ago.

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