The RBI’s September 11, 2023 order rejecting Tata Sons’ request to surrender its registration has thrown the company into a regulatory limbo, but the reaction from the biggest external shareholder is not one of defiance. Shapoor Mistry, who owns 18.4% of Tata Sons through SPG, declared the listing a "social and moral imperative" and urged the company to view the RBI decision as a chance for reconciliation rather than conflict.
Before the RBI ruling, a settlement was in the works: SPG had floated a Rs 25,000 crore offer to buy out its stake in two tranches, an idea presented by Noel Tata at a recent board meeting. The talks stalled over valuation disagreements, with SPG insisting the market’s discount to the group’s assets undervalued its holdings. Mistry’s statement did not rehash these differences but highlighted the need for a new, transparent valuation framework.
Mistry also pointed out that an IPO would grant SPG greater liquidity to manage debt and unlock value for shareholders long tied to Tata Sons’ private status. He said a listed Tata Sons would broaden participation, improve governance, and pave the way for a more equitable dividend policy, all while protecting investor interests.
The company is expected to file its IPO prospectus with the RBI in the first half of October, after clearing the regulator’s new compliance requirements. The filing will set the stage for a public offering that could reshape Tata Sons’ capital structure and governance for the next generation.