In a statement following the RBI’s decision to reject Tata Sons’ application to surrender its registration as a core investment company, Mistry said, “I welcome the decision wholeheartedly” and added that the regulator had provided clarity on the way forward for Tata Sons.
Mistry reiterated his support for a public listing of Tata Sons, saying it was “not merely a financial or regulatory matter” but a “social and moral imperative” because of the holding company’s importance and the need for greater public accountability.
SP Group calls for cooperation on Tata Sons listing
Mistry said the RBI’s decision should not be viewed as a victory for one stakeholder over another.“Let us not allow the listing to become even a minor point of division. Let us use it as a bridge,” he said, calling for reconciliation and a stronger institutional future.
He added that the more than century-old relationship between the Shapoorji Pallonji and Tata groups had been built on enterprise, trust and shared experiences.
“I look forward to working closely and constructively with Tata Sons on this pathway,” Mistry said, adding that the SP Group was ready to engage with the Tata institution with respect for its heritage and confidence in its future.
Mistry also said the RBI’s decision could become “a landmark in the evolution of Indian corporate governance”, arguing that Tata Sons could combine greater transparency and public accountability with its philanthropic role.
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SP Group’s Tata Sons stake in focus
The statement comes amid renewed discussions around the future of the SP Group’s stake in Tata Sons following the RBI’s decision.
The SP Group holds an estimated 18.37% stake in Tata Sons, India’s largest unlisted conglomerate holding company.
On Thursday, Tata Trusts said Noel Tata had put forward a proposal to the Tata Sons board to provide at least ₹25,000 crore in liquidity to the SP Group by monetising part of its Tata Sons stake.
The proposal involves Tata Sons shares held through Sterling Investment Corporation Private and Cyrus Investment Private, with the transaction structured in two tranches over 18 months. The shares would be valued based on their fair value determined under Rule 11UA of the Income Tax Rules, 1962, according to Tata Trusts.
Under the proposal, Tata Sons would initiate a selective capital reduction process before the National Company Law Tribunal (NCLT). Options proposed for funding the transaction include using internal cash flows, monetising listed investments, bringing in investors into some newer businesses and listing certain businesses through an offer-for-sale.
The proposal followed earlier discussions between Noel Tata, Tata Sons Chairman N Chandrasekaran and Shapoor Mistry.
Tata Trusts has separately maintained that Tata Sons should remain unlisted and that alternatives to a public listing should be considered.
Mistry, however, said, “The objective is not victory for one side. The objective is a stronger Tata institution, stronger philanthropy, greater accountability, deeper partnership and, ultimately, greater service to India.”
