Shapoor Mistry pushes for Tata Sons listing as Tata Trusts' unanimity breaks

Mumbai: The Shapoorji Pallonji Group has once again weighed in on the matter of the Tata Sons listing, making the most of the disorder created after two vice-chairmen of Tata Trusts broke ranks this week to back a public-market debut for the holding company of the diversified Tata Group.

“As I have stated earlier, we would like to reiterate that a timely listing of Tata Sons is not merely a regulatory compliance but a necessary evolution. One that will reinforce corporate governance, deepen transparency and accountability,” Shapoor Mistry, chair of the SP Group, said in a statement on Friday.

The SP Group is the largest minority shareholder of Tata Sons, with an 18.37% stake. A listing of Tata Sons could help the Mumbai-based engineering and real estate group reduce its estimated ₹55,000-60,000 crore of debt.

Mistry’s comments come after Venu Srinivasan and Vijay Singh, both vice-chairmen of Tata Trusts, called for a listing of Tata Sons in separate interviews to The Economic Times and the Indian Express earlier this week. Tata Trusts is an umbrella entity comprising 15 philanthropic entities that together own two-thirds Tata Sons shares.

In July 2025, Tata Trusts, led by chairman Noel Tata, directed Tata Sons chairman Natarajan Chandrasekaran to explore all possible options to ensure that the holding company of the Tata Group remained private.

Significantly, the Tata Trusts also asked Chandrasekaran to continue discussions with the Shapoorji Pallonji Group to facilitate an exit for the largest minority shareholder.

Regulatory tussle

The matter of listing Tata Sons arises as part of a scale-based regulatory framework introduced by the Reserve Bank of India in October 2021.

The framework categorized non-banking financial companies (NBFC) into four layers—base, middle, upper, and top—based on size, activity, and perceived risk.

Under this framework, Tata Sons was classified as an upper-layer NBFC — in September 2022 — due to its significant borrowings and its heavy investments in group companies. But Tata Sons missed the 30 September 2025 deadline to get itself listed, as stipulated by the banking regulator.

The Economic Times reported on 6 January 2025 that Tata Sons voluntarily surrendered its certificate of registration with the RBI in 2024.

However, RBI's list of registered NBFCs released on Friday classifies Tata Sons as an upper layer. This, for now, implies that the central bank has still not accepted Tata Sons' request to deregister.

The fresh list was part of a set of changes proposed by the RBI to its existing scale-based regulations, including simplifying the criteria for classifying non-banks in the upper layer, and allowing state-owned non-banks to join the club.

Under Friday’s proposals, NBFCs with assets of ₹1 trillion and above will be part of the list. Tata Sons' standalone assets totalled ₹1,75,356.6 crore at the end of March 2025.

So far, the company has failed to make an evidence-based case to remain private, Mistry said on Friday, adding that a listing of Tata Sons was in the interest of the public, as it would strengthen board accountability and broaden the investor base.

It would also unlock value for millions of retail shareholders, create a more defined and robust dividend stream for the Tata Trusts, and expand the social and philanthropic impact that benefits the poorest sections of the country, he added. “We repose full faith in the government of India and the Reserve Bank of India to act decisively,” Mistry said.

The reclusive SP Group chief had similarly broken character to publicly call for a listing of Tata Sons after the company missed the 30 September 2025 listing deadline.

Tata Sons did not immediately respond to Mint’s request for comment.

Shayan Ghosh contributed to this story.