Tata Trusts Trustees Consider Revisiting Tata Sons’ Private Status Amid IPO Talks
Mumbai: Several trustees of Tata Trusts are reportedly discussing a review of a July resolution that kept Tata Sons privately held. The move could potentially remove the main obstacle to a public listing of the conglomerate’s holding company, aligning with a mandate issued by India’s banking regulator three years ago. Tata Trusts is the majority shareholder in Tata Sons.
Minority stakeholder Shapoorji Pallonji (SP) Group has long advocated for a Tata Sons IPO, citing the liquidity benefits it could bring to the debt-laden group. Reports suggest that the reconsideration of the earlier resolution is emerging amid internal divisions within Tata Trusts that first came to light on September 12.
The shift comes shortly after Tata officials met Home Minister Amit Shah and Finance Minister Nirmala Sitharaman in New Delhi. During the meeting, the government urged the Trusts to maintain stability, avoid internal confrontation, and ensure differences do not affect the operations of India’s largest business conglomerate. Whether the trustees supporting a listing can secure a majority decision remains uncertain. Sources indicate there is a shared desire among trustees to avoid the appearance of a divided board, despite ongoing differences.
On Friday, SP Group reiterated its push for a public listing of Tata Sons. The Trusts remain split between two factions following the unprecedented removal of trustee Vijay Singh from Tata Sons’ board on September 11 by trustees Darius Khambata, Mehli Mistry, Pramit Jhaveri, and Jehangir Jehangir. The faction had also proposed Mehli Mistry’s nomination to the board, which was blocked by Chairman Noel Tata, Vice-Chairman Venu Srinivasan, and Vijay Singh.
Tata Trusts holds a 66% controlling stake in Tata Sons via the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust. The July resolution that kept Tata Sons private may now be revisited in light of growing pressure to unlock value for SP Group and facilitate a potential exit.
Friday’s board meeting reportedly proceeded as usual, focusing on project funding and other routine matters. Sources suggest that internal discussions are being shaped by the need to balance shareholder demands with group stability. “There is no animosity between SP Group and Tata Sons at this point,” a person familiar with the matter said.