Tata Empire Feud Reignites: SP Group Demands Tata Sons Go Public

A simmering feud within India’s iconic Tata empire has reignited, with Shapoorji Pallonji Mistry, patriarch of the SP Group, doubling down on his call for Tata Sons—the holding company of the $150 billion Tata Group—to go public. The demand, rooted in a push for transparency and fairness, comes as tensions flare within the Tata Trusts, the charitable juggernaut controlling a 66% stake in Tata Sons, over boardroom appointments and strategic direction.

Mistry, whose SP Group holds an 18.37% stake in Tata Sons, emphasized on Friday that listing the conglomerate’s linchpin would honor founder Jamsetji Tata’s vision of openness while unlocking value for 1.2 crore indirect shareholders of Tata’s 26 listed companies. “A public listing will strengthen trust among employees, investors, and the people of India,” Mistry declared, adding that it would ensure a robust dividend policy, funneling steady funds to Tata Trusts, India’s largest public charity. His stance, he insists, aligns with good governance and the legacy of both founding families, despite a fraught history.

The SP Group’s push traces back to a bitter fallout after Cyrus Mistry, Shapoorji’s son, was ousted as Tata Sons chairman in 2016, shattering decades of cordial ties. Cyrus’s death in a 2022 car crash deepened the rift, with the SP Group, strapped for liquidity, unable to offload its stake due to Tata Sons’ private status. A public listing could open that door, but it faces resistance from Tata Trusts, led by Noel Tata, and Tata Sons chairman N. Chandrasekaran, who reportedly favor staying private to shield the conglomerate from external takeovers.

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The Reserve Bank of India (RBI) looms large in this saga. Tata Sons, classified as an upper-tier non-banking finance company, missed a September 30 deadline to list, as mandated by RBI regulations. While the company has lobbied to remain private, citing its unique structure, Mistry expressed confidence that the RBI would uphold “the rule of law and spirit of fairness.” RBI Governor Sanjay Malhotra, sidestepping specifics earlier this month, noted that registered entities must comply unless exemptions are granted. Sources hint the Tatas may have secured a reprieve, potentially resolving the listing overhang by year-end.

Within Tata Trusts, discord brews over board appointments, with trustees reportedly split between Noel Tata’s allies and those backing Mehli Mistry, cousin of the late Cyrus. Key figures, including Venu Srinivasan, Darius Khambata, Jehangir HC Jehangir, and Pramit Jhaveri, clashed over appointing trustee Vijay Singh to the Tata Sons board, a move some blocked. A Friday meeting of trustees, attended by Noel Tata and Chandrasekaran, stayed cordial, sidestepping these thorny issues, per insiders. Earlier, both leaders met Union Ministers Amit Shah and Nirmala Sitharaman, who urged amicable resolution to the brewing tensions.

Analysts like Shriram Subramanian of InGovern Research Services downplay immediate impacts on Tata Sons or its sprawling portfolio, from Tata Steel to TCS. “The differences won’t shake operations yet,” he notes, though escalation could ripple if strategic decisions falter. For now, the SP Group’s clarion call for a listing—potentially reshaping India Inc.’s crown jewel—keeps the spotlight on a high-stakes corporate chess game, with the RBI as the ultimate arbiter.

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