18 September 2026 (Navroze Bureau) : Shapoorji Pallonji Group Chairman Shapoorji Pallonji Mistry has strongly backed a potential public listing of Tata Sons, calling an IPO of the Tata Group’s holding company a “social and moral imperative”.
His comments came after the Reserve Bank of India (RBI) rejected Tata Sons’ request to surrender its registration as an Upper-Layer NBFC and directed the company to comply with the applicable regulatory framework.
SP Group Welcomes RBI Decision
Mistry said the SP Group welcomed the RBI’s decision, arguing that it provides greater clarity on Tata Sons’ regulatory position.
He said the RBI’s decision should be viewed in the context of transparency, accountability and responsible institution-building rather than as a victory for one stakeholder over another.
Why Tata Sons Listing Is Being Discussed
Tata Sons is the holding company of the Tata Group and owns or controls interests across major businesses including Tata Consultancy Services, Tata Motors, Tata Steel and Air India.
The company was classified as an Upper-Layer NBFC under the RBI’s scale-based regulatory framework. Reuters reported that Tata Sons had standalone assets of about ₹1.75 lakh crore as of March 2025, putting it within the regulatory framework that requires listing for qualifying entities.
SP Group Holds About 18.4%
The Shapoorji Pallonji Group owns about 18.4% of Tata Sons, making it the holding company’s second-largest shareholder. The stake is held through investment companies including Sterling Investments Corporation and Cyrus Investments.
The SP Group has repeatedly argued that a public listing could improve transparency, strengthen governance and unlock value for shareholders.
Tata Trusts Oppose Listing
The push for an IPO has created a disagreement between major Tata Sons stakeholders.
Tata Trusts, which owns about 66% of Tata Sons, has maintained that it has not agreed to a public listing and that all available options should be considered.
Tata Trusts chairman Noel Tata has also questioned whether the RBI’s communication specifically requires a listing, saying the board needs to assess the legal implications of the regulator’s decision.
₹25,000-Crore Alternative Proposal
The listing debate has also been accompanied by discussions over the SP Group’s stake.
Tata Trusts said on September 17 that Noel Tata had tabled an SP Group proposal involving the monetisation of part of its Tata Sons shareholding. The proposal envisages a transaction generating at least ₹25,000 crore, with the sale taking place in two tranches over 18 months and a selective capital-reduction process through the NCLT.
This proposal has been presented as an alternative to a public listing, according to reporting on the discussions.
Mistry Calls for Transparency and Accountability
Mistry has framed the proposed listing as more than a financial transaction.
He said a publicly accountable Tata Sons could strengthen transparency, broaden participation, provide greater visibility into value and protect the interests of different stakeholders while maintaining the Tata Group’s philanthropic legacy.
Focus on Tata Trusts’ Philanthropic Role
A central issue in the debate is the relationship between Tata Sons and the charitable Tata Trusts.
Mistry has argued that greater transparency at Tata Sons could also strengthen the Trusts’ ability to fund philanthropic activities over the long term.
Tata Trusts, however, has emphasised preserving the existing ownership structure, under which dividends from Tata Sons support its charitable activities.
A Century-Old Tata-SP Relationship
The disagreement is taking place between two business groups with a relationship stretching back more than a century.
Mistry said the current differences should not become a permanent division and expressed a desire for greater engagement and cooperation between the SP Group, Tata Sons and Tata Trusts.
What Happens Next
The RBI’s rejection of Tata Sons’ deregistration request has increased pressure on the company to address its regulatory obligations.
At the same time, the disagreement over whether and how Tata Sons should be listed remains unresolved. The company’s board, shareholders and Tata Trusts will have to navigate the regulatory requirements alongside competing proposals concerning the ownership structure.
For now, the SP Group has made its position clear: it supports a public listing and sees it as an important step towards greater transparency and accountability.