Mumbai (Maharashtra) [India], September 18 (ANI): The Shapoorji Pallonji Group, the second largest shareholder in Tata Sons, has backed the public listing of Tata Sons, saying the move would strengthen transparency, accountability and governance at the Tata Group's holding company.
In a statement on Friday, Shapoorji Pallonji Group Chairman, Shapoorji Pallonji Mistry, welcomed the RBI's decision and said it provided clarity on the way forward for Tata Sons.
Mistry said Tata Sons had been classified as an Upper-Layer NBFC under the RBI's Scale-Based Regulatory Framework and that the listing route followed from that regulatory framework.
"With the RBI having rejected the application to surrender its registration and directing Tata Sons towards the necessary compliance at the earliest, the path forward is clear," Mistry said.
The statement comes amid differences between Tata Trusts and the Tata Sons board over the proposed listing. Tata Trusts, which holds the majority stake in Tata Sons, has opposed the public listing, while the Shapoorji Pallonji Group, which owns around 18.4 per cent, has backed it.
In Tata Sons’ shareholding structure, Tata Trusts hold around 66 per cent, while the Shapoorji Pallonji Group owns 18.37 per cent. Tata Group companies together hold around 13 per cent in Tata Sons. These include Tata Motors Passenger Vehicles, Tata Steel, Tata Chemicals, Tata Power, Indian Hotels, Tata Consumer Products and Tata Investment Corporation.
Mistry said the public listing of Tata Sons should not be viewed merely as a financial or regulatory matter, but as an issue linked to transparency and public accountability.
"I have repeatedly said that the public listing of Tata Sons is not merely a financial or regulatory matter. It is a social and moral imperative," Mistry said.
According to Mistry, listing Tata Sons could strengthen transparency and accountability while preserving the philanthropic purpose associated with the Tata legacy.
He also said the development should not be seen as a victory of one stakeholder over another and called for greater engagement between Tata Sons, Tata Trusts and other stakeholders.
"The listing of Tata Sons can become a bridge. A bridge between shareholders and Trusts, between private heritage and public accountability, between generations of stewardship, and between India's great past and the extraordinary future that lies ahead," he said.
The Shapoorji Pallonji Group and Tata Group have a relationship spanning more than a century. Mistry said he wanted to use the current situation to build closer ties rather than deepen differences.
The development could further intensify the debate over the future ownership and governance structure of Tata Sons, with the company's listing now emerging as a key issue between its board, Tata Trusts and other shareholders. (ANI)
Shapoorji Pallonji, second largest shareholder in Tata Sons, backs listing, calls it key to transparency and accountability
