18 September,2026 05:53 PM IST | New Delhi | mid-day online correspondent
Representational Image. File pic.
Shapoorji Pallonji Group on Friday backed the listing of Tata Sons, the holding company of the USD 180 billion Tata Group, saying the move would strengthen transparency and public accountability, according to news agency PTI.
This comes amid Tata Trusts, which along with affiliated trusts controls about 66 per cent of Tata Sons, opposing the listing.
Shapoorji Pallonji Group, the second largest shareholder in Tata Sons with around 18.4 per cent stake, has been pushing for the listing as it will unlock value from the privately held holding company to support its own debt repayment.
Shapoor Mistry, chairman of Shapoorji Pallonji (SP) Group, in a statement, said the listing was "not merely a financial or regulatory matter" but a "social and moral imperative", and called it an opportunity to strengthen governance while preserving the philanthropic role of the Tata Trusts, as per PTI.
The proposed listing of Tata Sons was discussed at the board meeting after the Reserve Bank of India (RBI) rejected its application to surrender its core investment company registration. Tata Sons had sought de-registration in March 2024 after becoming debt free to avoid the listing requirement that applies to upper layer non banking financial companies (NBFCs). However, the regulator's decision means the holding company faces the mandatory listing.
Referring to this Mistry said, "I welcome the decision wholeheartedly." He said the listing could lead to greater transparency and public accountability at the holding company of the Tata Group.
He said the RBI's decision had provided "full clarity" and that Tata Sons should now move towards compliance with the regulatory framework governing upper-layer non-banking financial companies.
"This landmark decision should not be viewed as a victory of one stakeholder over another," Mistry said adding that the listing of Tata Sons "can become a bridge" between shareholders and the Tata Trusts and between private ownership and public accountability.
He added that public accountability can coexist with Tata's philanthropic mission.
"Transparency, in my view, is the truest form of respect for both legacy and the future," Mistry said.
Invoking Tata founder Jamsetji Tata's philosophy that business should serve the wider community, he said a stronger and more transparent Tata Sons could greater visibility into the value of the holding company, strengthen governance and create durable flow of value toward the Tata Trusts' philanthropic mission.
Tata Trusts Chairman Noel Tata had opposed the listing saying that the operating structure of Tata Group is unique as it is premised on trust and its majority shareholder is a charity. "The principal activity of this company is to invest in and support the companies of the Tata Group. If Tata Sons is publicly listed, the rights of Tata Trusts as majority shareholders stand to be seriously impaired," he said.
Speaking at the house of Tatas he said that the charity funds hospitals, universities, and research from the dividends it receives and exists for public purpose and for nation building.
Noel Tata further pointed out that the RBI communication on September 11 "does not mention listing" and the regulator has not prescribed any particular step, nor has it said "the company is in breach."
"What its legal effect is, and what it requires of this Company and by when, are questions upon which this
Board has formed no view," he said.
He had pushed for the holding group company to remain private, urging Tata Sons to explore other options other than listing, saying that the listing will destroy its character.
"That is not sentiment. It is the operating model of this House, and it has stood the test of time for more than a century. A listing will destroy its character and strike at the heart of this principle," he said.
(With inputs from PTI)
