Tata group stocks lost ground for the third day on Thursday amid concerns about purported disclosure made by ousted group chairman Cyrus Mistry about huge write-down risks at some firms, taking the total market value erosion to over Rs 26,000 crore this week.
Barring TCS, rest of the other major group companies saw continued decline in stock price. TCS ended 0.68 per cent higher on BSE on Thursday.
Tata Motors scrip fell by 1.44 per cent, Tata Power slipped 1.36 per cent and Tata Steel went down by 0.44 per cent.
Besides, Tata Teleservices plummeted 9.72 per cent, Indian Hotels tumbled 5.81 per cent, Tata Investment Corporation (5.43 pc), Tata Global Beverages (5.12 pc), Tata Metaliks (4.74 pc), Tinplate Company of India (3.98 pc), Tata Coffee (3.33 pc), Tayo Rolls (2.91 pc), Tata Motors Ltd DVR (2.08 pc) and Rallis India (2 pc).
Tata Chemicals lost 1.98 per cent, Tata Communications (1.68 per cent), Titan Company (1.53 per cent), Voltas (0.90 per cent) and Trent (0.73 per cent).
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.
Tata Steel and Indian Hotels on Thursday said they have always made all relevant disclosures and have no further comments to offer following comments made by ousted Tata Group chairman Cyrus Mistry that Tata group firms could face a potential USD 18 billion writedown.
“The financial statements of the company are prepared on a going concern basis and present a true and fair view of the state of affairs of the company. As part of preparation of financial statements, the value-in-use of the assets of the company is tested for impairment as per accounting standards,” Tata Steel and Indian Hotels Company said in a filing to BSE.
Regulator Sebi and stock exchanges are keeping a close tab on share movement and trading volumes of all listed companies of the group.