SP Mistry calls for public listing of Tata Sons amid infighting within Tata Trusts

SP Group chairman Shapoorji Pallonji Mistry on Friday reiterated calls for a public listing of Tata Sons to bring transparency, amid infighting among trustees of Tata Trusts which controls a 66 per cent stake in the holding company of the salt-to-software conglomerate.

The Shapoorji Pallonji family is the single largest minority shareholder with roughly 18.37 per cent stake in Tata Sons. The SP Group has been looking at leveraging its shareholding in Tata Sons to raise funds and pare its debt.

In a statement, Mistry called for the Reserve Bank of India's compliance timeline of 30 September for Tata Sons to be listed "under the "Upper Layer" classification "be viewed with the seriousness and sanctity that regulatory commitments deserve".

The Shapoorji Pallonji Group has consistently advocated the public listing of Tata Sons, Mistry said. "We firmly believe that listing this premier institution will not only uphold the spirit of transparency envisioned by its founding father, Shri Jamsetji Tata, but also strengthen trust among all stakeholders — employees, investors, and the people of India," he noted.

He further said, "Our stance is guided by a simple yet profound belief - transparency is the truest form of respect for both legacy and the future."

As one of India's oldest business houses, he added, "We have full faith in the Reserve Bank of India, a constitutional and autonomous body, to take decisions grounded in the principles of equity, justice, and public interest."

The RBI's Scale-Based Regulatory Framework clearly articulates that a non-banking financial company (NBFC) should not act in a manner detrimental to the interests of its investors, Mistry noted.

In this context, he said, "We trust that the 30th September 2025 compliance timeline under the "Upper Layer" classification will be viewed with the seriousness and sanctity that regulatory commitments deserve." He expressed confidence that the RBI will act in accordance with the rule of law and the spirit of fairness.

Mistry asserted that the public listing of Tata Sons is "not merely a financial step but it is a moral and social imperative".

He further said, "It will unlock immense value for over 1.2 crore shareholders of listed Tata companies, who are indirect shareholders of Tata Sons, representing the aspirations of all Indians -- the very citizens who have, for decades, held faith in the Tata name as a symbol of integrity and national pride."

Importantly, he said, Tata Trusts, India's largest public charity, stands to benefit immensely from this process. "A transparent and publicly accountable Tata Sons would pave the way for a robust and equitable dividend policy, thereby ensuring sustained inflows to the Trusts," Mistry noted.

These funds, true to the founding vision of the Tatas, can then be dedicated to the welfare of the poor, the upliftment of communities, and the service of our great nation, he added.

"Our position is in not in conflict, but completely in consonance, with the ideals of Shri Jamsetji Tata, whose vision was that of an enterprise serving the nation with openness, accountability, and compassion," Mistry asserted.

His statement comes at a time when the trustees of Tata Trusts are vertically split and the infighting threatens to impact the functioning of Tata Sons and in general the over USD 180 billion salt-to-semiconductor conglomerate.

Tata Trusts exerts decisive influence over India's most valuable conglomerate through its about 66 per cent stake in Tata Sons.

The matter reached the government and on Tuesday Tata Trusts chairman Noel Tata and Tata Sons chairman N. Chandrasekaran, along with Tata Trusts vice-chairman Venu Srinivasan and trustee Darius Khambata, met Union home minister Amit Shah and finance minister Nirmala Sitharaman at the home minister's residence.

The relationship between the SP Group and Tata Group became strained after the unexpected sacking of the late Cyrus Mistry as chairman of Tata Sons in October 2016, following which acrimonious board room fights and legal battles ensued.