Lack of clarity over MSCI inclusion of the merged entity has been one of the key reasons why the stocks have been under pressure. There were concerns that the merged entity would not have enough headroom for additional foreign investments. The investment headroom for overseas investors in the merged entity was around 12% as on September 30, while the required threshold for MSCI inclusion is 15%.
Tata Sons boardroom battle intensifies but Tata Group stocks remain unbothered. Should you buy?
Tata Sons has rejected Noel Tata’s objections to N Chandrasekaran’s reappointment, saying the board’s decision was valid and made in accordance with the company’s Articles