Tata’s shake-up could slow group’s debt reduction
Tata Sons’ move to oust Cyrus Mistry and his core team of advisers could lead to delays in the group’s bid to reduce its debt load across its businesses, analysts say. The company wants to bring back Ratan Tata as chairman of the salt-tosoftware conglomerate. The stunning boardroom coup, announced late on Monday, led to a drop in the value of shares in some of Tata’s major listed entities on Tuesday. This was despite the company’s attempt to calm the waters by bringing a well-known and widely respected hand like Ratan Tata back to the helm. “Under Mistry, Tata Group has taken significant steps towards deleveraging and better utilisation of capital over the last few years,” Citigroup said in a note circulated to internal clients yesterday.