Tata Trusts put SP Group Rs 25,000 cr plan

Tata Trusts has firmly stated that it does not support the listing of Tata Sons, urging the board to consider all alternative options aside from the listing and emphasizing the significance of preserving the century-old ownership structure of the Tata Group. This stance was reiterated during a board meeting on September 17, where chairperson Noel Tata reiterated the Trust's opposition to the proposed listing.

Following a communication from the Reserve Bank of India on September 11, the board acknowledged the need to explore all available options, including listing, and to thoroughly assess these options immediately. The findings of this assessment will be presented to the board, after which a separate meeting will be convened to determine the appropriate course of action.

Tata Trusts maintains that its position has remained unchanged since the Tata Sons board unanimously decided in March 2024 to remain unlisted. Additionally, resolutions passed by the Sir Dorabji Tata Trust and Sir Ratan Tata Trust in July 2025 also favored maintaining the company's unlisted status. The Trusts argue that the company's ownership structure has enabled Tata Sons to operate in ways that a purely commercial approach would not have permitted.

Noel Tata highlighted that the Tata Group's ownership model, where the majority shareholder is a charitable trust and dividends fund public-purpose activities, is central to the group's identity and its public-service mission. He warned that a listing would undermine the company's character and threaten the very principles upon which the Tata Group was founded over a century ago.

The Trusts propose that Tata Sons, in consultation with Tata Trusts, should submit a detailed representation to the RBI, seek a hearing, explore permissible avenues to avoid a public listing, and seek legal advice on available remedies. They also suggest that if listing becomes unavoidable, the company should be granted at least a three-year period from the date of the RBI's September 11 communication to comply, considering the extensive preparation required and the company's long-term commitments.

The push for continuity aligns with the RBI's efforts to compel Tata Sons, classified as an Upper Layer Non-Banking Financial Company (NBFC), to adhere to mandatory listing norms. This comes after the RBI rejected Tata Sons' request to surrender its registration as a core investment company. The statement follows Tata Sons' approval of N Chandrasekaran's reappointment as Executive Chairman for another five-year term, a decision the Trusts have separately deemed a violation of the company's Articles of Association.