Tata Trusts asks Tata Sons to try and stay private, provide an exit to SP group: Report

The board of the Trusts also cleared the renewal process of N Chandrasekaran’s term as Tata Sons chairman beyond February 2027

Noel Tata-led Tata Trusts has directed Tata Sons chairman N Chandrasekaran to consider all options so that the holding company of the Tata group stays private, a report by Mint said on July 31. Moreover, the Trusts asked Tata Sons to continue its talks with the group’s largest minority shareholder Shapoorji Pallonji Group for the latter’s exit, the report said.

The development comes after a board meeting of Sir Ratan Tata Trusts took place on July 28, which was attended by all the trustees, the paper said. Tata Trusts owns 65.9 percent of Tata Sons and Noel Tata took over as the chairman following the death of Rata Tata last year.

The Trusts, in a resolution passed at the meeting, said the Tata Sons chairman is requested to “exercise best endeavours” to ensure that it remains an unlisted private company and it “fully engages” with the Reserve Bank for that, the newspaper reported

Significantly, the board of the Trusts also cleared the renewal process of Chandrasekaran’s term as chairman of the holding company beyond February 2027, a report by The Economic Times said.

The move holds major significance as it was the first time the Trusts has given its opinion on the issue of RBI’s listing requirements and its desire to give the SP group an exit, Mint said. According to a 2021 RBI order, all upper-layer non-banking financial companies are required to be listed by September 2025.

The paper, citing sources, also said that it was a rare instance of the Trusts sending an advisory to Tata Sons, adding that the Trust is becoming more assertive under the new chairman.

Tata group had reported a total revenue of Rs 15.34 lakh crore in FY25 and a net profit of 1.13 lakh crore with a market cap of Rs 37.84 lakh crore. Tata Sons posted a revenue jump of 24 percent to Rs 5.92 lakh crore, with the net profit slipping 17 percent to Rs 28,898 crore.