Listing ofhares is a social and moral imperative, Shapoorji Pallonji Group (SP group ) has said, highlighting difference with Tata Trusts chairman Noel Tata who is opposed to a share sale.
SP group is a minority shareholders in Tata Sons and holds over 18 per cent stake.
While Noel Tata on Thursday asked the board of Tata Sons to explore options other than listing, SP group views share sale as a clear path to comply with Reserve Bank of India’s direction.
“I have repeatedly said that the public listing of Tata Sons is not merely a financial or regulatory matter. It is a social and moral imperative. It is about strengthening transparency and public accountability in one of India’s most consequential business institutions, while preserving and advancing the extraordinary philanthropic purpose that lies at the heart of the Tata legacy,“ SP group chairman Shapoorji Pallonji Mistry said in a statement
“The question before us should not simply be who owns what, or how a corporate structure is preserved. The larger question should be how can one of India’s greatest industrial institutions become even stronger, more transparent, more accountable and more capable of serving the nation, “ Mistry said.
“I believe a transparent and publicly accountable Tata Sons can strengthen the entire ecosystem. It can broaden participation, enhance governance, give greater visibility to value, protect the legitimate interests of investors and provide the basis for a more robust and equitable dividend policy. Most importantly, it can strengthen the capacity of the Tata Trusts to pursue their philanthropic responsibilities over generations,” he added.
Listing of Tata Sons shares has become a hotly debated issue among company’s board members and its owners following Reserve Bank of India’s decision to classify the group holding company in non banking financial company upper-layer category.
“The has provided full clarity. With the RBI having rejected the application to surrender its registration and directing Tata Sons towards the necessary compliance at the earliest, the path forward is clear,” Mistry said.