Noel Tata, chair of Tata Trusts, delivered a forceful statement at the board meeting on Thursday, declaring that the Trusts are staunchly opposed to a public listing of Tata Sons. He argued that the holding company’s unlisted status is integral to the Tata Group’s century‑old legacy of national service.
The Reserve Bank of India has classified Tata Sons as an Upper Layer NBFC and has mandated a public listing to ensure transparency. Last week, the RBI rejected Tata Sons’ application to surrender its company registration, effectively removing the company’s option to remain private.
Shapoorji Pallonji Group, which holds 18 per cent of Tata Sons, has pushed for a listing to monetize its stake and raise at least Rs 25,000 crore to meet liquidity needs. The proposal, presented to the board, highlights the financial pressure on minority shareholders.
The board resolved to initiate steps to comply with RBI guidelines and guidance from Tata Trusts and other stakeholders. If Tata Sons goes public, analysts estimate a valuation of Rs 9‑12 lakh crore and an IPO size likely to exceed Rs 55,000 crore; the combined market cap of listed Tata Group companies stands above Rs 30 lakh crore.