Mumbai, Oct 10 Amid sharp differences within the Tata Trusts that have come to the fore, the Shapoorji Pallonji Mistry (SP) Group on Friday announced support for the public listing of Tata Sons.
"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," the SP Group said in a statement.
Any delay in a Tata Sons IPO is against the interests of the Shapoorji Pallonji Group, which wants to sell part of its 18.37 per cent stake in Tata Sons to raise funds for reducing the debt burden of its construction and engineering company.
According to the statement, a transparent and publicly accountable Tata Sons would unlock immense value for over 12 million shareholders of listed Tata companies, who are indirect stakeholders in Tata Sons and represent the aspirations of Indians "who have, for decades, held faith in the Tata name as a symbol of integrity and national pride".
The SP Group expressed full faith in the Reserve Bank of India (RBI), describing it as a constitutional and autonomous body guided by the principles of equity, justice, and public interest.
Tata Trusts, India’s largest public charity that holds a 66 per cent stake in Tata Sons, have substantial powers to veto board decisions. While some trustees reportedly support listing Tata Sons, others remain opposed.
The SP Group further stated that its position is "not in conflict, but completely in consonance" with the ideals of Jamsetji Tata, whose vision was of "an enterprise serving the nation with openness, accountability, and compassion".
"We reaffirm that our relationship with the House of Tatas spans generations, built on mutual respect, and shared heritage," the statement said. "We remain fully committed to playing a constructive role alongside Tata Trusts and Tata Sons in shaping a future that upholds the legacy of both our founding families."
On Tuesday, Tata Trusts Chairman Noel Tata and Tata Group Chairman N. Chandrasekaran, along with Tata Trusts Vice Chairman Venu Srinivasan and trustee Darius Khambata, met Home Minister Amit Shah and Finance Minister Nirmala Sitharaman to discuss issues that have cropped up in the group due to the infighting.
The Centre is understood to have made it clear to the top management of the Tata Group that it was keen to see stability restored at the Tata Trusts and the internal feud should not adversely impact the functioning of the Group, which is one of the country’s most valuable businesses.
The infighting in the Tata Group also surfaced when a meeting was convened on September 11 to consider the reappointment of former Defence Secretary Vijay Singh as a nominee director on the Tata Sons board. At the meeting, the reappointment of 77-year-old Singh - a director since 2012 and trustee since 2018 - was proposed by Noel Tata and TVS Group Chairman Emeritus Venu Srinivasan.
However, Mehli Mistry, Pramit Jhaveri, Jehangir H.C. Jehangir, and Khambata, the four other trustees, were opposed to the move, leading to the rejection of the resolution.
The four trustees then sought to nominate Mistry to the Tata Sons board, but Noel Tata and Srinivasan opposed the move, highlighting the need for a transparent process aligned with the Tata Group’s values.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor