Mumbai: Shapoorji Mistry, the chairperson of the Shapoorji Pallonji Group, urged all Tata Trustees to back the listing of Tata Sons, saying that could also pave the way for a deeper relationship between the two business houses.
The SP Group chair’s comments come after Tata Trusts, led by Mistry’s brother-in-law Noel Tata, vehemently opposed a public listing of Tata Sons. For the debt-laden SP Group, Tata Son’s listing would unlock value for its minority stake in the Tata group holding company.
“I would like to see Tata Sons evolve into a modern, globally respected and publicly responsible holding institution,” Mistry said in a public statement. “I therefore appeal to every section of the Tata group—individual trustees, Tata Sons, its leadership, its shareholders, employees and all other stakeholders to come forward in a spirit of harmony and shared purpose.”
Tata Trusts chairman Noel Tata told the Tata Sons board on 17 September that he would block any decision to list the country’s largest company by revenue and instead suggested the group’s holding company ask the Reserve Bank of India for at least three years to meet the requirements if a listing is eventually necessary.
The Tata Sons board also approved a third, five-year term for N. Chandrasekaran as its chairman, which .
Mistry urged Tata Trusts to not let the listing become a point of division. Instead, he suggested using it as an opportunity for reconciliation, renewal and a stronger institutional future.
“This landmark decision should not be viewed as a victory of one stakeholder over another. It should be viewed as an opportunity to bring people and institutions together,” he said.
The century-old relationship between the two business houses reached a low a decade ago when Mistry’s younger brother Cyrus was ousted as the chair of Tata Sons by Ratan Tata in 2016.
“The relationship between the Shapoorji Pallonji and Tata group is itself more than a century old. It has been built over generations through enterprise, trust, shared experiences, and a deep understanding of the responsibilities that come with building institutions in India. I therefore look forward not merely to a resolution of the present chapter, but to forging a greater partnership, greater engagement and deeper relationships with Tata Sons and the Tata Trusts in the years ahead,” Mistry said in his statement.
Debt problems
The SP Group first became a shareholder of Tata Sons in 1965, under patriarch Shapoorji Pallonji Mistry, and over the next three decades kept buying shares until its ownership reached 18.37%, making it the largest minority shareholder in the company.
But as the SP Group’s financial position became critical over the past decade, the one asset that could solve its debt problems—its stake in Tata Sons—remains illiquid as the company’s articles of association effectively prevent any sale.
Mistry’s comments urging Tata Trusts to back a listing come a day after Noel Tata at the Tata Sons board meeting on 17 September to buy back a 3% stake from the SP Group for ₹25,000 crore, giving much needed capital to the Mumbai-based business house.
The SP Group’s total debt across its holding and operating companies is estimated to be upwards of ₹60,000 crore, as per media reports.
Mistry also commended the Reserve Bank of India and the Indian government for the push to .
“I want to acknowledge the RBI and the Government for the clarity of purpose brought to this process and the discipline shown in holding all institutions, regardless of size or standing to the same standard,” he said.