Tata Sons Listing: Shapoorji Pallonji Chairman Welcomes RBI Decision, Calls for Cooperation

Tata Sons Listing: Shapoorji Pallonji Group Chairman Shapoor Mistry has welcomed the Reserve Bank of India’s rejection of Tata Sons’ application to surrender its core investment company registration, saying the decision should be seen as an opportunity for greater transparency and accountability.

As reported by CNBC-TV18, Mistry said he welcomed the RBI’s decision “wholeheartedly” and that the regulator had provided clarity on the way forward for Tata Sons.

He reiterated his support for a public listing of Tata Sons, describing it as “not merely a financial or regulatory matter” but a “social and moral imperative”, given the holding company’s significance and the need for greater public accountability.

Mistry said the listing should not become a source of division between the Tata and Shapoorji Pallonji groups. “Let us not allow the listing to become even a minor point of division. Let us use it as a bridge,” he said.

He pointed to the more than century-old relationship between the two groups, describing it as one built on enterprise, trust and shared experience. Mistry added that he looked forward to working “closely and constructively” with Tata Sons and said the SP Group was ready to engage with the institution while respecting its heritage.

Mistry also said the RBI’s decision could become “a landmark in the evolution of Indian corporate governance” if Tata Sons can combine greater transparency and public accountability with its philanthropic role.

“The objective is not victory for one side. The objective is a stronger Tata institution, stronger philanthropy, greater accountability, deeper partnership and, ultimately, greater service to India,” Mistry said.

Tata Sons Stake: SP Group Holds 18.37% In Holding Company

The Shapoorji Pallonji Group holds an estimated 18.37% stake in Tata Sons, India’s largest unlisted conglomerate holding company. The latest statement comes amid renewed discussions over the future of that stake following the RBI’s decision.

Tata Trusts said on Thursday that Noel Tata had proposed to the Tata Sons board that the company provide at least ₹25,000 crore in liquidity to the SP Group by monetising part of its Tata Sons stake.

Under the proposal, shares held through Sterling Investment Corporation Private and Cyrus Investment Private would be involved in a transaction structured in two tranches over 18 months. The shares would be valued based on their fair value under Rule 11UA of the Income Tax Rules, 1962.

Tata Sons would initiate a selective capital reduction process before the National Company Law Tribunal as part of the proposed arrangement. Funding options include using internal cash flows, monetising listed investments, bringing investors into some newer businesses and listing select businesses through an offer-for-sale.

The proposal followed earlier discussions involving Noel Tata, Tata Sons Chairman N Chandrasekaran and Shapoor Mistry.

Tata Trusts Maintains Its Stand On Unlisted Status

Tata Trusts has separately maintained that Tata Sons should remain unlisted and that alternatives to a public listing should be considered.

Mistry’s latest comments indicate that the SP Group continues to support a public listing of Tata Sons, while also calling for cooperation between the two groups as discussions around the holding company’s ownership and future structure continue.

The RBI’s rejection of Tata Sons’ application to surrender its core investment company registration has therefore brought the listing question back into focus, alongside the proposed liquidity arrangement for the SP Group.

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