As soon as the news, of the unceremonious ouster of Cyrus Mistry, filtered in. Apologists for the group rallied on TV channels, extolling virtues of the legendary Tata (and reminding us that he can do no wrong). I has questioned the manner in which the drama was played out, almost like that of a place coup. I also questioned that lack of information offered to investors, especially for group companies in the listed space.
The sheen of Corporate Governance that the Group once enjoyed, is wearing off. The underlying message that seems o be given is, a CEO cannot survive unless he/she pays obeisance to the old guard.
There has been value destruction and clarity has still not emerged. Both sides continue to wash dirty linen in public. Brand Tata has taken a beating. The nervousness of investors apparent in the below table:
|Tata Motor DVR||363||360||345||327|
(4th Nov rates at 1130 hrs)