Tata Trusts has clarified that it does not support the listing of Tata Sons amid SP Group’s debt issues of over ₹52,000 crore.
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PAUL NORONHA/businessline
In direct opposition to the Shapoorji Pallonji Group, Tata Trusts is understood to have decided not to support the listing of Tata Sons at this time, as it could impact its ability to exercise voting rights on significant inter-group matters.
At the same time, it is open to exploring options for an orderly exit for the SP Group from Tata Sons over a mutually acceptable period, sources said.
According to Tata Trusts, the motivation expressed by SP Group for the listing of Tata Sons was primarily to secure liquidity for its shareholding, thereby addressing its self-inflicted debt challenges, sources aware of developments said.
Sources pointed out that the difficulties being faced by the SP Group are of its own making that cannot be remedied through the listing of Tata Sons. The charitable body feels that the proposal for listing was not only to provide an exit for the SP Group but also to undermine the special majority shareholder rights accorded to Tata Trusts, under the articles of association of Tata Sons.
Last Friday, SP group had sent out a strongly worded statement reiterating its call for a listing of Tata Sons, in which it holds 18.4 per cent stake. It has debt of over ₹52,000 crore and a listing of Tata Sons is a financial imperative for it to raise funds to discharge its obligations.
Under Article 75 of Articles of Association, Tata Trusts has the right to buy out SP group’s stake. This provision was agreed to way back in 1964 when it had originally acquired the stake and which was upheld by the Supreme Court in 2021.
Listing Tata Sons would mean that it would be subject to listing regulations that mandate majority of minority voting, restricting majority shareholders from voting on certain resolutions. The Trustees are understood to have concerns about the intent behind the push for listing.
Published on October 15, 2025