Shapoor Mistry says Tata Sons listing is a ‘social and moral imperative’; backs RBI rejection

The RBI’s decision means Tata Sons will have to move towards listing its shares on the stock exchanges. The Shapoorji Pallonji Group holds an 18.37 per cent stake in Tata Sons. The debt-laden group, which has businesses in construction and infrastructure, has been looking for ways to monetise its stake in Tata Sons.

“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 in a statement to ANI.

He said the RBI’s decision had provided “full clarity” on the way ahead. Tata Sons had been classified as an Upper-Layer NBFC under the RBI’s Scale-Based Regulatory Framework, and the listing requirement followed from that regulatory structure, Mistry said.

Mistry says Tata Sons listing is more than a financial issue

Mistry said the listing should not be seen only as a financial or regulatory matter.

“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,” he said.

According to Mistry, a public listing would increase transparency and public accountability at Tata Sons while also protecting and carrying forward the philanthropic work that has been a key part of the Tata legacy.

The comments come at a time when the Tata group is divided over the proposed listing. Noel Tata, chairman of Tata Trusts, is opposed to the listing. Noel Tata is married to Mistry’s sister, making him Shapoor Mistry’s brother-in-law.

Mistry’s late brother, Cyrus Mistry, was chairman of Tata Sons from 2012 to 2016. He died in a road accident in 2022.

‘Listing can become a bridge’

Mistry said the RBI decision should not be seen as a victory for one shareholder or stakeholder over another. Instead, he said, it could provide an opportunity for different sides to work together.

“The listing of Tata Sons can become a bridge. A bridge between shareholders and Trusts, between private heritage and public accountability, between generations of stewardship, and between India’s great past and the extraordinary future that lies ahead,” Mistry said, according to ANI.

He also spoke about the long standing relationship between the Shapoorji Pallonji and Tata groups.

According to Mistry, the relationship goes back more than 100 years and has been built across generations through business, trust and shared experiences.

He said both groups also understood the responsibility involved in building major 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. Always with a spirit of mutual respect and always keeping the national interest paramount,” Mistry said.

Mistry says listing can benefit investors and Tata Trusts

Mistry said a transparent and publicly accountable Tata Sons could have bigger benefits for the Tata group.

“I believe a transparent and publicly accountable Tata Sons can strengthen the entire ecosystem,” he said.

He said a listing could allow wider participation, improve governance and give investors greater visibility into the value of the company.

“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,” Mistry said.

He added that one of the biggest benefits could be for Tata Trusts, which rely on the group’s wealth to support their philanthropic work.

“Most importantly, it can strengthen the capacity of the Tata Trusts to pursue their philanthropic responsibilities over generations,” he said.