Tata Sons, the holding company of Tata Group, which includes 31 big companies like TCS, Tata Motors and Tata Steel, is now facing pressure to get listed in the stock market. This issue can be discussed in the board meeting of two big Tata Trusts on Saturday.
Till now Tata Sons has been an unlisted company, but now there is a demand from within the company to list it. This pressure has increased especially from its second largest shareholder Shapoorji Pallonji (SP) Group. Apart from this, the new rules of RBI can also push the company towards listing, if it does not get any relaxation.
What is the structure of Tata Group?
The structure of the 108 year old Tata Group is quite different. A group of philanthropic institutions named Tata Trusts holds about 66% stake in Tata Sons. Debt-ridden Shapoorji Pallonji Group holds 18.4% stake in the company. Tata Trusts consists of a total of 13 institutions, out of which 7 directly hold stake in Tata Sons. There are 6 trustees on the board of Tata Trusts. Tata family member Noel Tata is currently the chairman of Tata Trusts and is also a director on the board of Tata Sons.
Who wants listing of Tata Sons?
The pressure for listing is coming from many sides. Venu Srinivasan and Vijay Singh, two trustees of Tata Trusts, have publicly said that expansion into new areas like semiconductors will require huge investments, which is difficult to raise from internal resources.
SP Group also wants Tata Sons to be listed so that it can sell its stake or exit from it. Under the current structure its stake cannot be easily transferred.
Why did RBI rules become a problem?
Tata Sons is considered a core investment company, hence RBI rules apply to it. According to the revised rules of RBI, companies whose assets are more than Rs 1 lakh crore or which have access to public funds will have to be listed in the stock exchange.
As of March 2025, Tata Sons’ assets were Rs 1.75 lakh crore. However, RBI has the right to exempt any company from listing.
Who is protesting?
According to media reports, Noel Tata is personally against making Tata Sons a listed company. It is being told that last year he and other trustees had unanimously opposed the listing and had asked for talks with RBI.
All eyes on Saturday’s meeting
There will be a board meeting of Sir Dorabji Tata Trust and Sir Ratan Tata Trust on Saturday. Together these two have more than 50% stake in Tata Sons. RBI rules and the impact of possible listing will be discussed in the meeting. If the majority of trustees vote in favor of listing, then Tata Sons may have to start the process of getting listed on the stock exchange.
