SP Group’s Shapoor Mistry backs RBI decision on Tata Sons

Shapoorji Pallonji Mistry, chairman of the Shapoorji Pallonji Group, has expressed support for the Reserve Bank of India's decision to reject Tata Sons' request to relinquish its registration as an Upper-Layer NBFC. Mistry believes that this move brings clarity to the situation and strengthens the case for a public listing of Tata Sons. He emphasized the importance of such a listing for enhancing transparency and accountability within the company.

Mistry's stance came a day after Tata Trusts, which owns about 66% of Tata Sons, opposed the idea of immediately taking the company public. The trust suggested that all available options should be explored before proceeding. Recently, Tata Group stocks experienced a dip of up to 7% due to uncertainty surrounding the potential Tata Sons listing.

In response to the RBI's decision, Mistry described it as providing "full clarity" and emphasized that the listing was a "social and moral imperative." He also reassured that his SP Group remains open to working collaboratively with Tata Sons. The development highlights a disagreement between Tata Trusts and the Tata Sons board regarding the proposed listing.

Noel Tata, chairman of Tata Trusts, acknowledged the need for a thorough examination of the matter and stressed the importance of providing the board with comprehensive information before making a decision. He reiterated that the RBI order did not explicitly mandate a listing, but did not prescribe any particular steps or indicate a regulatory violation.

The debate surrounding Tata Sons' listing has gained significant attention following the Tata Sons board meeting. At this meeting, N Chandrasekaran was reappointed as chairman for an additional five-year term, and the company decided to explore a public listing after the RBI denied its application to withdraw its Core Investment Company registration.

A potential listing could unlock value for shareholders of listed Tata companies that hold stakes in Tata Sons, including entities like Tata Chemicals, Tata Motors, and Tata Investment Corporation.