Tata Trusts chairman says proposed Tata Sons reorganisation could avoid listing
Noel Tata said the charity's plan merges Tata Group companies into Tata Sons and complies with RBI guidelines, adding Tata Sons listing would increase scrutiny and could affect philanthropic efforts.
On Sept 29, the chairman of Tata Trusts said the charity’s proposed reorganisation of Tata Sons is in line with Reserve Bank of India guidelines and could help the salt-to-software conglomerate avoid a stock market listing. Tata Trusts holds 66% of Tata Sons and on Monday proposed merging two Tata Group companies with the holding company, in an effort to sidestep a Reserve Bank of India requirement that Tata Sons list its shares. Noel Tata, speaking at an event hosted by Indian television channel Republic TV, said he hopes the Reserve Bank of India will engage with the group on the issue and reach a solution that avoids a listing.
The proposal comes after a public rift between Tata Trusts and Tata Sons, with the charity objecting to both the reappointment of Tata Sons Chairman N. Chandrasekaran and a proposed listing of the holding company, which controls more than 30 Tata Group companies. Noel Tata said a listing would change how Tata Sons has operated for more than 150 years. A public listing would also bring greater market scrutiny, disclosure requirements and minority-shareholder oversight, potentially reducing Tata’s influence.
Trusts have long influenced the group's strategy. A listing would increase pressure on the company to deliver every quarter to meet shareholders' expectations, which "could impact" the group's philanthropic efforts, Tata said. Reporting by Anuran Sadhu and Jayshree P Upadhyay; Editing by Tasim Zahid +91 8697274436