SP Group Renews Call for Tata Sons IPO amid Rift Within Tata Trusts

The Shapoorji Pallonji (SP) Group, the largest minority shareholder of India’s biggest conglomerate Tata Sons, on Friday once again reiterated its demand for the public listing of Tata Sons. The call comes amid reports suggesting that the Tata Group plans to buy out part of SP Group’s 18% stake to avoid a Reserve Bank of India (RBI)-mandated public listing.

Without directly commenting on these reports, the parent company of Afcons Infrastructure stated that it has “consistently advocated 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 statement said.

The SP Group also commented on the recent dispute among the trustees of Tata Trusts, the umbrella organisation of family charitable trusts that collectively own about 65% of Tata Sons.

“In light of the recent developments pertaining to the internal matters of Tata Trusts, it is both timely and necessary to reiterate our long-standing position — one that has always been rooted in transparency, fairness, public interest, and adherence to the principles of good corporate governance,” the group said.

The SP Group added that as one of India’s oldest business houses, it has full faith in the RBI to take decisions based on “the principles of equity, justice, and public interest.”

“The RBI’s Scale-Based Regulatory Framework clearly articulates that a Non-Banking Financial Company (NBFC) should not act in a manner detrimental to the interests of its investors,” the statement added.

The group, led by Shapoor Mistry, has already written to the RBI demanding that Tata Sons be listed. The demand followed Tata Sons’ classification in 2022 as an “Upper-Layer” Core Investment Company (CIC) under the RBI’s scale-based regulatory framework. The classification required a mandatory public listing of the holding company by September 30, 2025. That deadline has now expired.

Tata Sons maintains that it is not primarily engaged in financial business but functions as an industrial holding company. In March 2024, it applied to surrender its registration as a CIC, a request still pending with the RBI. The regulator has clarified that such entities may continue operations while their applications are under review.

“The public listing of Tata Sons is not merely a financial step, it is a moral and social imperative. It will unlock immense value for over 1.2 crore shareholders of listed Tata companies, who are indirect shareholders of Tata Sons,” the SP Group said.

Notably, one of the reasons behind the SP Group’s renewed push is its financial stress. The group remains heavily indebted, estimated at up to ₹60,000 crore, with a large portion leveraged against its 18% stake in Tata Sons. Part of this debt was recently refinanced through a private credit facility, which is costlier than conventional corporate loans.

‘Cordial’ Meeting of Tata Trusts

Meanwhile, Tata Trusts’ meeting on Friday was described as “cordial” and said it had no bearing on Tata Sons-related matters, according to an an NDTV Profit. Citing sources, the report said the meeting was business as usual, focusing mainly on the Trusts’ charitable initiatives.

The rift within Tata Trusts reportedly began after a stormy board meeting in September, which exposed divisions over board appointments, information sharing, and Tata Sons’ pending listing obligations.

The faction led by Noel Tata, which includes Venu Srinivasan and Vijay Singh (a former nominee director of Tata Sons), is said to advocate continuity and adherence to due process before making governance changes. The opposing group, led by Mehli Mistry and comprising Pramit Jhaveri, Jehangir Jehangir, and Darius Khambata, had opposed Vijay Singh’s reappointment and called for new nominee directors.