Shares price of Sterling and Wilson Solar, a Shapoorji Pallonji Group (SP Group) company, tumbled nearly 9 per cent on Friday after the Supreme Court bench, led by Chief Justice SA Bobde, dismissed appeals of the group and set aside the judgement which had ordered the reinstatement of Cyrus Mistry as Chairman of Tata Sons.
At 2.30 p.m. the company’s scrip was trading at Rs 244.95, lower by Rs 27.45 or 10.08 per cent. However, by the end of the day’s trade, it was down by 8.54 per cent at Rs 249.15.
On the other hand, the share price Tata group companies surged with TCS at Rs 3068.15 (up by 0.0033 per cent); Tata Steel Limited at Rs 766.65 (6.05 per cent higher); Tata Motors at Rs 296.30 (up by 3.78 per cent); Tata Consumer Products Ltd at Rs 628 (2.14 per cent high) and Titan Company gained 2.06 per cent to hit Rs 1,509.45.
“All the questions of law are liable to be favoured for Tata group. The appeals are allowed by Tata group,” Chief Justice SA Bobde said. The top court upheld the Tata Sons decision to sack Cyrus Mistry on October 24, 2016.
Shapoorji Pallonji Group counsel had argued that Mistry was removed because he was going to place a draft governance structure at the Board meeting on October 24, 2016.
“We find all the questions of law are liable to be answered in favour of the appellants (Tata Group) and the appeals filed by the Tata Group are liable to be allowed and Shapoorji Pallonji group is liable to be dismissed,” said the top court.
The top court said the value of SP Group shares will depend on the valuation by Tata Sons equities and the court will not determine the fair value.
In December 2019, the NCLAT had ruled that the proceedings of the Board meeting of Tata Sons held on October 24, 2016 removing Cyrus Mistry as chairperson was illegal.