The 148-year-old family owned Business Conglomerate – TATA Sons’ board room storm may adversely affect domestic institutional investors like LIC. Several investment biggies including insurance companies, banks and pension funds have put their resources on various TATA Son entities.
But now, with unease at the top and potential for destructive revelations, share prices may get a setback. This is what the Finance Ministry warns the public sector financial institutions who have invested heavily in the conglomerate’s businesses.
The Finance Ministry has already asked LIC and other institutions to have a close watch on developments in the coming days. LIC is one of the biggest investors in TCS and Tata Steel. Similarly, several banks hold significant shares in other small Tata Son enterprises. Share prices have already fallen between 2 to 3 per cent after the removal of Cyrus Mistry.