Tata Sons approves public listing, extends chairman’s tenure - report

Tata Sons has greenlit a public listing and extended the tenure of Chairman Natarajan Chandrasekaran by five years, according to Bloomberg's exclusive report on Thursday. The board's decision came in response to a Reserve Bank of India directive urging the company to pursue an IPO. Chandrasekaran was tasked with overseeing the listing process during his extended tenure.

Following the news, shares of Tata Group companies surged, with Tata Motors Passenger Vehicles up 5.26%, Tata Steel climbing 2.84%, and Tata Consultancy Services rising 2.45%.

Chandrasekaran had previously announced his intention to step down in February 2027, after months of disputes with Tata Trusts Chairman Noel Tata regarding the listing and capital allocation. Last month, the RBI denied Tata Sons' request for an exemption from the listing requirements and filed a caveat in the Bombay High Court to ensure it could challenge the decision if necessary.

Minority shareholder Shapoorji Pallonji Group, holding an 18.4% stake in Tata Sons, has long advocated for a listing, arguing it would unlock value, enable monetization of their stake, and help reduce the company's debt burden. However, Tata Trusts, which owns a majority 66% share in Tata Sons, has resisted the move, fearing it could dilute their control and weaken the board's ability to fend off hostile takeovers.