Shapoorji Pallonji Backs Tata Sons Listing as Differences With Tata Trusts Persist

The Shapoorji Pallonji Group has expressed support once again for the public listing of Tata Sons by clearly stating a stance that contrasts significantly from Tata Trusts regarding the move to be taken after the Reserve Bank of India’s recent ruling. 

According to Shapoor Mistry, the chairman of the Shapoorji Pallonji Group, the latest decision of the RBI has cleared the air regarding the matter. A public listing can improve the transparency and accountability of Tata Sons, he said. 

The SP Group holds the second-largest stake of 18% in Tata Sons while the Tata Trusts hold 66%. 

The two shareholders are reading the regulatory situation differently. 

Tata Trusts Chairman Noel Tata said after the September 17 Tata Sons board meeting that the RBI’s September 11 order did not specifically state that listing was the only available route. He favoured further engagement with the central bank as Tata Sons considers ways to remain privately held. 

Mistry, in a statement issued the following day, took the opposite view. He pointed to Tata Sons’ classification as an Upper-Layer NBFC under the RBI’s scale-based regulatory framework and said the regulator’s rejection of the company’s application to surrender its registration had clarified the way ahead. 

His comments represent the SP Group’s interpretation of the regulatory position. 

₹25,000 crore proposal also on the table 

The disagreement comes alongside another proposal concerning the SP Group’s holding in Tata Sons. 

At Thursday’s board meeting, Noel Tata presented a proposal from the SP Group that would allow it to monetise part of its Tata Sons stake and raise ₹25,000 crore without taking the holding company public. 

A day later, however, Mistry publicly made the case for listing Tata Sons. 

He argued that bringing Tata Sons to the stock market could improve governance, widen participation, give shareholders greater visibility into value and support a more equitable dividend framework. He also linked greater transparency at Tata Sons with the long-term philanthropic work carried out through Tata Trusts. 

Mistry stressed that he did not view the issue as a contest between shareholders. Instead, he called for greater engagement among Tata Sons, Tata Trusts and the SP Group as they work through the current differences. 

The relationship between the Tata and Shapoorji Pallonji groups stretches back more than a century, although it has also seen periods of considerable strain. 

Cyrus Mistry became chairman of Tata Sons in 2012 before being removed in 2016 following a boardroom dispute led by then Tata Trusts Chairman Ratan Tata. 

A decade later, the question is centred on the future structure of Tata Sons. Tata Trusts continues to explore alternatives to a listing, while the SP Group has now publicly argued that the RBI decision points towards taking the holding company to the stock market.