Tata Sons headed for IPO? Vijay Singh, Venu Srinivasan push for listing as debate intensifies

Calls for a Tata Sons IPO intensified on Thursday as senior Trustee Vijay Singh spoke out in support of the move. This came hours after TVS Chairman Venu Srinivasan pushed for a public listing on the stock exchanges. Their stance clashes with a resolution passed by Tata Trusts a year ago to retain the company as an unlisted entity.

“Tata Sons, from its earliest days a 100 years ago, has been a key driver of nation building projects such as steel, locomotives, power and infrastructure. That role has now expanded into areas like aviation, defence, semiconductors, batteries and electronics which demand large capital that can be raised internally only up to a point,” Indian Express quoted Singh as saying.

He opined that Tata Sons (which is the principal shareholder of the Tata Group) needed more transparency as it grew in size and scale. Singh noted that the company had quadrupled its worth over the last decade — stressing the need for stability and a rigorous regulatory mechanism now.

“The Tata Trusts have been fractious and turbulent in the recent past and there is no guarantee of a better future…If India is to produce fighter aircraft with a foreign partner, a huge investment will be required. Such projects, crucial for the country, should never be foregone for lack of funds, which can only be raised from the market by a listed entity,” Singh said.

His remarks come less than a day after Srinivasan made a similar statement on Thursday. He also told Economic Times that such a listing would allow the Shapoorji Pallonji Group to monetise its 18.37% stake in Tata Sons — a long-standing demand of the minority shareholder seeking to pay off debt.

“A public listing would not only unlock value for minority shareholders (including providing an exit route to the Shapoorji Pallonji Group) but also equip Tata Sons with capital to sustain its growth trajectory,” the Tata Trusts vice chairman told ET.

The matter of listing Tata Sons has been under consideration and discussion for a while now as the Reserve Bank of India regulations require Tata Sons to be listed on the stock exchanges as it is considered to be an upper layer non-banking finance company.