Shapoorji Pallonji Group, with 18.4% Tata Sons stake, backs its public listing

On September 11, the Reserve Bank of India (RBI) rejected Tata Sons' application to surrender its registration, forcing the company to comply with regulations. This decision has deepened a rift between two of the company's largest shareholders, Shapoorji Pallonji Group (SPG) and Tata Sons. SPG, which holds an 18.4% stake in Tata Sons, and Tata Sons' chairman Noel Tata had been exploring a settlement, with Tata Sons even tabled a proposal at a board meeting.

However, differences over the valuation of SPG's stake in Tata Sons ultimately led to the talks falling through. SPG chairman Shapoor Mistry, whose conglomerate holds a stake in Tata Sons, now says that a public listing is a "social and moral imperative." He sees the listing as an opportunity for reconciliation and cooperation rather than a conflict between shareholders.