Noel Tata's big move, Tata Trusts asks Tata Sons not to get listed to 'try everything to stay private', provide an exit to Shapoorji Pallonji group
Noel Tata, who leads Tata Trusts, has asked Tata Sons Chairman N. Chandrasekaran to make sure that Tata Sons, the main company of the Tata Group, remains a private company. This was reported by Mint on July 31. Tata Trusts also told Tata Sons to keep talking to the Shapoorji Pallonji (SP) Group, the company's biggest minority shareholder, and find a way for them to exit the company.
The development comes after a board meeting of Sir Ratan Tata Trusts took place on July 28, which was attended by all the trustees, the paper said. Tata Trusts owns 65.9 percent of Tata Sons and Noel Tata took over as the chairman following the death of Rata Tata last year. Tata Sons will stay private
In the meeting, the Sir Ratan Tata Trust (SRTT) passed a proposal that Tata Sons should continue as a private unlisted company, which means its shares will not be traded on the stock market. The chairman of Tata Sons, N. Chandrasekaran, has been asked to make sure this status remains unchanged. He will also need to talk to the Reserve Bank of India (RBI) to handle any related issues. SP group may exit Tata Sons
The second important decision was about the Shapoorji Pallonji (SP) Group, which owns 18.37 per cent shares in Tata Sons. The trustees have advised the chairman to start talks with the SP Group and offer them a way to exit Tata Sons by selling their shares.
This decision is important because the SP Group is currently under financial pressure and has already pledged its shares to borrow money. Giving them an exit option might help them deal with their debt situation. Tata Sons Chairman Chandrasekaran likely to continue beyond 2027
Tata Trusts have also decided to begin the process to extend the term of Tata Sons Chairman, N. Chandrasekaran, beyond February 2027. The trustees believe his leadership is essential, especially as Tata Sons is making big investments in new sectors like Tata Digital, Tata Electronics, Air India, Defence, and Battery technology. In recent years, the group has already invested over USD 120 billion, with an additional Rs. 30,000 crore planned. Changing strategy and old tensions
The move to help the Shapoorji Pallonji (SP) Group exit Tata Sons marks a major shift in the group's strategy. The relationship between Tata and SP Group soured after Cyrus Mistry, a member of the SP family, was removed as Tata Sons Chairman in 2016.
More recently, SP Group asked the RBI to push for the public listing of Tata Sons, hoping it would benefit all shareholders. But now, Tata seems focused on keeping the company private, while also moving forward with long-term leadership and structural clarity. Tata Sons faces financial pressure and deadline for Stock Exchange listing
In FY 2025, the Tata Group reported a total revenue of Rs. 15.34 lakh crore and a net profit of Rs. 1.13 lakh crore. The group's total market capitalization stood at a massive Rs. 37.84 lakh crore.
Tata Sons, the holding company of the group, saw its revenue grow by 24 per cent to Rs. 5.92 lakh crore. However, its net profit declined by 17 per cent to Rs. 28,898 crore. Interestingly, despite the dip in profits, Tata Sons doubled its dividend payout to Rs. 1,414.5 crore.
As of FY 2025, Tata Sons oversaw: 323 subsidiaries
39 associate companies
32 joint ventures
In September 2022, the Reserve Bank of India (RBI) classified Tata Sons as a 'Top Layer NBFC' (Non-Banking Financial Company – Upper Layer). According to RBI rules, such companies must be listed on the stock exchange by September 2025.
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