Shapoorji Pallonji Mistry Group reiterates call for Tata Sons’ public listing, cites ‘transparency and governance’

The SP Group said it remains 'fully committed to playing a constructive role alongside Tata Trusts and Tata Sons' to uphold the legacy of both founding families.

Shapoorji Pallonji Group has renewed his call for the public listing of Tata Sons, saying the move would strengthen transparency, governance, and trust among stakeholders amid ongoing developments surrounding Tata Trusts.

In a statement issued on Friday, the Shapoorji Pallonji (SP) Group has said that it “consistently advocated the public listing of Tata Sons”, calling it a step aligned with the founding principles of the Tata group.

“Listing this premier institution will not only uphold the spirit of transparency envisioned by Shri Jamsetji Tata but also strengthen trust among all stakeholders, employees, investors, and the people of India,” the statement said.

The SP Group, which holds around 18% stake in Tata Sons, said a public listing is not just a financial decision but a “moral and social imperative” that would unlock value for more than 1.2 crore shareholders of listed Tata companies, who are indirect shareholders of Tata Sons.

“Transparency is the truest form of respect for both legacy and the future,” Mistry said, adding that a listed Tata Sons would ensure a “robust and equitable dividend policy” that benefits Tata Trusts, India’s largest public charity.

The statement also expressed confidence in the Reserve Bank of India’s regulatory oversight, referring to the Upper Layer compliance framework for large NBFCs.

“We have full faith in the RBI, a constitutional and autonomous body, to take decisions grounded in equity, justice, and public interest,” the SP Group said. Mistry reaffirmed that the group’s position was not adversarial but aligned with the ideals of Jamsetji Tata.

“Our position is not in conflict, but completely in consonance with the ideals of Shri Jamsetji Tata — openness, accountability, and compassion,” the statement said.

The SP Group said it remains “fully committed to playing a constructive role alongside Tata Trusts and Tata Sons” to uphold the legacy of both founding families.

Meanwhile, Tata Trusts' board discussed routine issues, staying away from contentious matters, in its meeting held on Friday amid murmurs of a rift among the trustees over board appointment and governance issues.

"Today’s meeting was routine, with no contentious issues discussed," a source said, adding that there were presentations on various hospital and rural development projects. "There was no reference to past events," the source added.

The meeting comes after the top brass of the Tata Group, including Tata Trusts Chairman Noel Tata and Tata Sons Chairman N Chandrasekaran, met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman on Tuesday.

When contacted, Tata Trusts declined to comment on what transpired in the meeting. However, reports said the agenda of the meeting is mainly focused on regular philanthropic activities and review of funding proposals for healthcare projects.

On Tuesday, Noel Tata and Chandrasekaran, along with Tata Trusts Vice Chairman Venu Srinivasan and trustee Darius Khambata, met Shah and Sitharaman at the home minister's residence. The meeting came against the backdrop of infighting among the trustees of Tata Trusts over board appointments and governance issues, which threaten to impact the functioning of the over USD 180 billion conglomerate.

Sources said Tata Trusts is said to be vertically split, with one section aligned with Noel Tata, who was appointed chairman of the Trusts following the death of Ratan Tata, as reported by news agency PTI. The other grouping of four trustees is led by Mehli Mistry, who has ties with the extended Shapoorji Pallonji family, which owns about 18.37 per cent of Tata Sons.

Mehli reportedly feels he has been kept out of the loop on key matters. According to sources, the flashpoint is said to be board seats at Tata Sons, which controls the 156-year-old group that spans around 400 companies, including 30 listed firms.

The dispute has its roots in a meeting of six trustees of the Tata Trusts, the umbrella group representing several charitable trusts, including the Sir Dorabji Tata Trust and Sri Ratan Tata Trust. The meeting on September 11 was convened to consider the reappointment of former defence secretary Vijay Singh as a nominee director on the Tata Sons board.

There are seven trustees of the Tata Trusts, including Singh. Singh did not attend the September 11 meeting as his nomination was on the agenda.

Following the death of Ratan Tata in October 2024, Tata Trusts introduced a policy requiring annual reappointment of nominee directors on the Tata Sons board once they turn 75. At the September 11 meeting, the reappointment of 77-year-old Singh - a director since 2012 and trustee since 2018 - was proposed by Trusts Chairman Noel Tata and Venu Srinivasan (chairman emeritus of TVS Group). However, the four other trustees - Mehli Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata - opposed the move, leading to the resolution's rejection.

Following the rejection, the four trustees sought to nominate Mehli Mistry to the Tata Sons board, but Noel Tata and Venu Srinivasan opposed the move, emphasising the need for a transparent process aligned with Tata's values. Subsequently, Singh voluntarily resigned from the Tata Sons board.

*With Agency Inputs