Tata Sons IPO a moral and social imperative, says Shapoorji Pallonji group

Amid developments within Tata Trusts, the Shapoorji Pallonji (SP) group, which owns an 18.4 per cent stake in Tata Sons, said it was “both timely and necessary” to reiterate its longstanding position of listing Tata Sons — a stand rooted in transparency, fairness, public interest, and adherence to good corporate governance.

In a statement, the SP group expressed full faith in the Reserve Bank of India (RBI), describing it as a constitutional and autonomous body guided by the principles of equity, justice, and public interest. Tata Trusts, India’s largest public charity that holds a 66 per cent stake in Tata Sons, has substantial powers to veto board decisions. While some trustees reportedly support listing of Tata Sons, others remain opposed. A listing of Tata Sons would enable the SP group to sell part of its stake and address its debt obligations.

The group noted that the RBI’s scale-based regulatory framework clearly stated that a non-banking financial company (NBFC) should not act in a manner detrimental to the interests of its investors.

“In this context, we trust that the September 30, 2025, compliance timeline under the ‘upper layer’ classification would be viewed with the seriousness and sanctity that regulatory commitments deserve. We are confident that the RBI will act, as it always has, in accordance with the rule of law and the spirit of fairness,” the group said.

Reiterating its longstanding stance, the SP group said it had consistently advocated the public listing of Tata Sons. “We firmly believe that listing this premier institution will not only uphold the spirit of transparency envisioned by its founding father, Jamsetji Tata, but also strengthen trust among all stakeholders — employees, investors, and the people of India,” the statement said.

The group said its position was guided by a simple belief: “Transparency is the truest form of respect for both legacy and the future.” It said the public listing of Tata Sons was not merely a financial step, but “a moral and social imperative”.

According to the statement, a transparent and publicly accountable Tata Sons would unlock immense value for over 12 million shareholders of listed Tata companies, who are indirect stakeholders in Tata Sons and represent the aspirations of Indians “who have, for decades, held faith in the Tata name as a symbol of integrity and national pride”.

The group said Tata Trusts would also benefit from the listing. “A transparent and publicly accountable Tata Sons would pave the way for a robust and equitable dividend policy, ensuring sustained inflows to the Trusts,” it said.

“These funds, true to the founding vision of the Tatas, can then be dedicated to the welfare of the poor, uplift of communities, and service of our great nation.”

SP Group emphasised that its position was “not in conflict, but completely in consonance” with the ideals of Jamsetji Tata, whose vision was of “an enterprise serving the nation with openness, accountability, and compassion”.

“We reaffirm that our relationship with the House of Tatas spans generations, built on mutual respect, and shared heritage,” the statement said. “We remain fully committed to playing a constructive role alongside Tata Trusts and Tata Sons in shaping a future that upholds the legacy of both our founding families.”

“SP Group remains steadfast in its commitment to these principles — for the stability of our institutions, the protection of shareholders, and the larger good of Bharat,” the group said.