Tata Trusts Rift Deepens as Parsi Trustees Lean Towards IPO for Tata Sons

Just days after Tata Trusts’ meeting, which was described as “cordial” and business as usual, new cracks have appeared in the body that controls the majority stakes of Tata Sons.

A group of four trustees, who opposed the reappointment of Vijay Singh to the board, also appears to be considering a public listing for Tata Sons, according to reports.

The group, which includes Mehli Mistry, Darius Khambata, Pramit Jhaveri, and Jehangir HC Jehangir, seems sympathetic to the Shapoorji Pallonji (SP) Group. The minority shareholder of Tata Sons has been pushing for a public listing for years and last week reiterated this demand.

According to The Economic Times (ET), the shift in Tata Trusts’ position follows meetings between Tata officials and Home Minister Amit Shah and Finance Minister Nirmala Sitharaman in New Delhi. During these meetings, the government urged the group to avoid internal conflict, maintain stability within the Trusts, and ensure that differences among trustees do not disrupt the operations of India’s largest business conglomerate.

How the Division Precipitated

Tata Trusts’ executive committee, which represents a group of family charities, has reportedly been amid turmoil since the appointment of Noel Tata as chairman, following the passing of Ratan Tata last October. Noel Tata is married to Aloo Mistry, daughter of the late Pallonji Mistry and sister to Shapoor Mistry and the late Cyrus Mistry, whose family controls the SP Group.

The discord became public in September when four trustees led by Mehli Mistry broke precedent by voting to remove fellow trustee Vijay Singh from Tata Sons’ board, proposing Mehli Mistry as his replacement. Another faction at the meeting included Chair Noel Tata and Venu Srinivasan. Singh was not present, as his appointment was on the agenda.

According to Business Today, all Parsi trustees have united in support of the SP Group. This alignment has reportedly been facilitated by senior women in the Mistry families, including those from the SP Group and the Meher Pallonji (MP) Group. These women have also reached out to Noel Tata to assist the SP Group, which is still recovering from Cyrus Mistry’s untimely death and facing financial pressures.

The two Mistry families, connected by a common patriarch three generations ago, had long-standing estrangements that deepened when Cyrus Mistry, appointed Tata Sons chairman in 2012, challenged certain large-scale contracts awarded to the MP Group. In 2016, Mehli Mistry of the MP Group supported Ratan Tata in the effort to remove Cyrus Mistry from Tata Sons, further straining relations. However, the report claims that relations between the families are now showing signs of reconciliation.

Tata Trusts’ Official Stance Unchanged

It remains unclear whether trustees advocating a potential Tata Sons listing can secure a majority, ET reported. The publication added that trustees share an interest in avoiding a divided front, even as disagreements persist.

Earlier proposals for a listing were blocked by Chairman Noel Tata, Vice-Chairman Venu Srinivasan, and trustee Vijay Singh. Tata Trusts, which holds a controlling 66% stake in Tata Sons via the Sir Ratan Tata Trust and Sir Dorabji Tata Trust, passed a resolution in July to keep Tata Sons privately held.

Later, Mint, citing some group executives, claimed that the official stance of the Trusts is still to maintain private ownership while providing the SP Group an exit.

On Friday, the board meeting focused on routine matters such as project funding, with no public indication of internal conflict.

However, the growing urgency to find a solution for the SP Group’s exit and to unlock value in Tata Sons, has influenced internal discussions.

N. Chandrasekaran Gets Third Term

Meanwhile, the person leading the exit discussions, Tata Sons Chairman N. Chandrasekaran, has been granted an additional term by Tata Trusts. The July resolution asked Chandrasekaran to find ways to keep Tata Sons private.

According to the latest ET report, Tata Trusts has approved a third executive term for Chandrasekaran, bypassing the group’s retirement policy for the first time. Chandrasekaran, who will turn 65 in February 2027, would normally be required to step down under Tata’s rules. However, the Trusts made an exception to ensure continuity as the group pursues strategic initiatives in semiconductors, EV batteries, and the turnaround of Air India.

The resolution, proposed by Noel Tata and Venu Srinivasan, was unanimously passed at a Trusts meeting on September 11 and forwarded to Tata Sons, which is expected to formalise the third term in February 2026.

This marks a notable break from internal norms, as executives previously could continue only in non-executive roles until 70. For example, Noel Tata stepped down from executive duties at 65 but remains non-executive.

Chandrasekaran’s leadership is seen as a stabilising factor, particularly as the group has nearly doubled revenue and tripled profit under his tenure, reaching ₹15.34 lakh crore in FY25 revenue and ₹1.13 lakh crore in profit.