Shapoorji Pallonji Group Chairman Shapoorji Pallonji Mistry has once again reiterated the need for the listing of Tata Sons, saying it is not merely a matter of regulatory compliance but a necessary evolution in the public interest, reposing faith in the government and the RBI to “act decisively” on the matter.
As per a PTI report, Mistry said in a statement that the SP Group has “full faith in the government of India and the Reserve Bank of India to act decisively” on the matter of listing of Tata Sons — the holding company of the coffee-to-cars-and-software conglomerate.
The Shapoorji Pallonji family owns about 18.37 percent of Tata Sons. The SP Group has been looking at leveraging its shareholding in Tata Sons to raise funds and pare its debt.
Mistry said that, so far, no clear evidence-based case has been presented to explain how a public listing would materially damage the interests of the Tata Trusts or reduce their ability to serve beneficiaries.
Listing will deepen transparency and accountability: Mistry
Mistry’s comment comes amid reports that two of the trustees of Tata Trusts, Venu Srinivasan and Vijay Singh, have favored public listing of Tata Sons. On the other hand, Tata Trust Chairman Noel Tata is against the move.
“As I have stated earlier, we would like to reiterate that a timely listing of Tata Sons is not merely a regulatory compliance but a necessary evolution. One that will reinforce corporate governance, deepen transparency and accountability,” Mistry said as per the statement quoted by PTI.
These form the very foundation of the Tata Group, Mistry said, adding that “to date, no clear, evidence-based case has been presented to explain how a public listing would materially damage the interests of the trusts or reduce their ability to serve beneficiaries”.
Asserting that “the listing of Tata Sons is fundamentally in the public interest”, he said, “A publicly listed holding company strengthens board accountability, broadens the investor base, and secures long-term value for all stakeholders”.
Listing will unlock value for shareholders: Mistry
Besides, Mistry said, “A listing will unlock value for millions of retail shareholders, create a more defined and robust dividend stream for the Tata Trusts, and expand the social and philanthropic impact that benefits the poorest sections of our country”.
This group, built on trust, integrity and public purpose, will only be strengthened through complying with the RBI-mandated listing, he said.
“While we remain in constructive engagement with the Tata Sons leadership to come to an amicable reconciliation at the earliest, we look towards the Reserve Bank of India for a decisive direction with regard to the listing,” Mistry said.
Last year in October, amid infighting among trustees of Tata Trusts, which control a 66 percent stake in Tata Sons, Mistry had called for its listing to bring transparency.