The Shapoorji Pallonji (SP) Group, which is a key stakeholder in Tata Sons, has demanded the public listing of the Tata Group’s influential holding company — a move that comes amidst an ongoing dispute between two factions within Tata Trusts. In a statement Friday, the SP Group said listing Tata Sons was not merely a financial reform but a “moral” obligation. It described such a move as a step that would revive founder Jamsetji Tata’s vision of transparency and restore faith among stakeholders, employees, investors and the public. “The SP Group has consistently advocated the listing of Tata Sons,” it said in the statement. “The public listing of Tata Sons is not merely a financial step — it is a moral and social imperative. A transparent and publicly accountable Tata Sons would pave the way for a robust and equitable dividend policy, thereby ensuring sustained inflows to the Trusts,” the SP Group said. “Our stance is guided by a simple yet profound belief — transparency is the truest form of respect for both legacy and the future,” the statement said. The statement comes at a time when Tata Sons has applied to RBI for deregistration as a Non-Banking Financial Company (NBFC) — a move widely seen as an attempt to sidestep the central bank’s mandate requiring “upper-layer” NBFCs to list by September 2025. Tata Sons has argued that it is not engaged in lending and therefore should not be bound by financial-sector regulations. When a company is listed on stock exchanges, it must adhere to stricter disclosure norms and comply with regulations set by market regulator SEBI, bringing it under greater investor and public scrutiny. Listing also helps unlock significant value for shareholders. The Pallonji Mistry family began purchasing shares of Tata Sons in the 1960s, steadily expanding its ownership over the following decades. By 1970, the SP Group had emerged as the single largest individual shareholder in Tata Sons. Currently, the SP Group is the largest shareholder of Tata Sons with 18.4 per cent after Tata Trusts which hold 66 per cent stake. Various Tata group companies and individuals hold the remaining 15.6 per cent stake. Cyrus Mistry from the SP Group was the Tata Sons chairman for nearly four years before he was ousted in October 2016. The SP Group’s statement comes in the middle of a simmering power struggle within the $180-billion Tata Group, with a bloc of four trustees in Tata Trusts led by M Pallonji director Mehli Mistry reportedly opposing trustee Vijay Singh’s reappointment to the board of Tata Sons. One group led by Tata Trusts chairman Noel Tata, along with trustees Venu Srinivasan of TVS Group and Singh, has advocated discretion and consensus-driven management. This group is known to have opposed the public listing of Tata Sons. Opposing them is the group led by Mehli Mistry, former Citibank CEO Pramit Jhaveri, Jehangir Hospital chairman Jehangir H C Jehangir and senior counsel Darius Khambata. This bloc has pushed for governance frameworks that reflect contemporary standards of accountability. “In light of recent developments within Tata Trusts, it is both timely and necessary to restate our long-standing position,” the SP Group said, adding that its stand was “rooted in transparency, fairness, public interest, and good governance.” Reaffirming faith in the RBI, the SP Group said it trusted the regulator to act with “equity, justice, and public interest” in mind. “The RBI’s Scale-Based Regulatory Framework clearly articulates that an NBFC must not act in a manner detrimental to the interests of its investors. We trust that the September 30.compliance timeline under the ‘Upper Layer’ classification will be viewed with the seriousness and sanctity it deserves,” the Group said. It said that the listing of Tata Sons would unlock “immense value” for over 1.2 crore shareholders of listed Tata companies. “Tata Trusts, India’s largest public charity, stands to benefit immensely from such a move,” the group said. “A transparent and publicly accountable Tata Sons would pave the way for a fair and sustainable dividend policy, ensuring a steady inflow of funds to the Trusts. These funds, true to the founding vision of the Tatas, can then be channelled toward the welfare of the poor, the upliftment of communities, and the service of the nation,” it said. The Group stressed that its position was not adversarial but aligned with the ideals of Jamsetji Tata — “an enterprise serving the nation with openness, accountability, and compassion.” “Our relationship with the House of Tatas spans generations, built on mutual respect and shared heritage. We remain committed to playing a constructive role alongside Tata Trusts and Tata Sons in shaping a future that honours the legacy of both founding families,” the statement concluded.
