Shares of Tata Communications fell over 4% intraday as the company’s Managing Director & Group CEO, Vinod Kumar resigned citing “personal reasons”.
The share price of Tata Communications opened at Rs 475 against the previous close of Rs 474.75 and dropped 4.16% to day’s low of Rs 455 on the BSE platform. The stock is trading lower than 5, 20, 50, 100 and 200-day moving average.
“Vinod Kumar has submitted his resignation as the managing director & group CEO of the company, and as a director of the company and its associated companies for personal reasons,” Tata Communication said in a regulatory filing.
As per the filing, the Board of Directors has accepted Kumar’s resignation, which will be effective from the close of business hours on 5 July, 2019. ” The Board has initiated steps to identify his successor and expects to finalise a suitable candidate at the earliest,” the filing added.
Kumar’s resignation comes a week ahead of Tata Communications annual shareholder meeting next month. The 54-year-old is the fourth Tata CEO in the past two and a half years to quit before his tenure, which was to end on January 31, 2021. He had joined Tata Communications in April 2004.
At 13:15 hours, the shares of Tata Communications were trading at Rs 469 on both the exchange platforms, down 1%. The company’s shares are trading close to its 52-week low of Rs 436.