'Social, Moral Imperative': Shapoorji Pallonji Mistry Backs Tata Sons Listing

Shapoorji Pallonji Group Chairman Shapoorji Pallonji Mistry has backed the Reserve Bank of India’s decision rejecting Tata Sons’ request to surrender its registration as an Upper-Layer NBFC, saying the move brings clarity and strengthens the case for a public listing of the Tata Group holding company.

Mistry said a listing of Tata Sons was important for improving transparency and accountability. His comments came a day after Tata Trusts opposed the idea of immediately taking the company public and said all possible options should be examined.

SP Group supports Tata Sons listing

In a statement, Mistry said the RBI’s decision provided “full clarity” and described the listing as a “social and moral imperative”. He added that the SP Group remained willing to engage constructively with Tata Sons.

The development highlights differences between Tata Trusts, which owns around 66% of Tata Sons, and the holding company’s board over the proposed listing.

Noel Tata, chairman of Tata Trusts, said the issue required detailed examination and that the board needed complete information before taking a decision.

“A matter of this kind requires papers, explanations, advice and time, and I have no doubt that these are being assembled. The Board will need a full briefing,” Noel Tata had said.

He also said the RBI order did not specifically mandate a listing. “The RBI's order 'does not mention listing',” he said, adding that it prescribed “no particular step” and did not indicate any regulatory breach.

RBI decision brings listing debate into focus

The debate follows the Tata Sons board meeting where N Chandrasekaran was reappointed as chairman for another five-year term and the company decided to consider a public listing after the RBI rejected its application to surrender its Core Investment Company registration.

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

Tata Sons was classified as an Upper-Layer NBFC by the RBI in 2022, making it subject to regulatory requirements that include listing obligations. The central bank rejected the company’s deregistration request on September 11 and directed it to comply with applicable norms.