Tata Sons IPO a moral imperative, says SP group

Amid developments within Tata Trusts, the Shapoorji Pallonji (SP) group, which owns an 18.4 per cent stake in Tata Sons, said it was "both timely and necessary" to reiterate its longstanding position of listing Tata Sons - a stand rooted in transparency, fairness, public interest, and adherence to good corporate governance.

- DEV CHATTERJEE

In a statement, the SP group expressed full faith in the Reserve Bank of India (RBI), describing it as a constitutional and autonomous body guided by the principles of equity, justice, and public interest. Tata Trusts, India's largest public charity that holds a 66 per cent stake in Tata Sons, has substantial powers to veto board decisions. While some trustees reportedly support listing of Tata Sons, others remain opposed. A listing of Tata Sons would enable the SP group to sell part of its stake and address its debt obligations.

The group noted that the RBI's scale-based regulatory framework clearly stated that a non-banking financial company (NBFC) should not act in a manner detrimental to the interests of its investors.