A Tata Trusts trustee has backed listing Tata Sons via an IPO, aligning with growing support despite the groups earlier stance to remain unlisted and explore alternatives to avoid going public.

Tata Sons IPO: After Venu Srinivasan, Tata Trusts Vice Chairman Vijay Singh backs listing of Tata Sons, says report

Tata Trusts trustee and former Defence Secretary Vijay Singh has called for the listing of Tata Sons on the stock exchanges through its initial public offering (IPO), after TVS Group’s Venu Srinivasan publicly supported the move, The Indian Express reported.

This is contrary to the resolution passed by Tata Trusts less than a year ago, which aimed to retain Tata Sons as an unlisted private entity, resisting regulatory momentum toward a potential IPO. More recently, Tata Trusts, under the chairmanship of Noel Tata, had asked Tata Sons Chairman N Chandrasekaran to explore all options to avoid a listing, while also initiating discussions on a potential exit for the SP Group.

'Time has come for Tata Sons listing'

Pushing for the IPO, Vijay Singh believes the expansion and the new capital and technology-intensive businesses of Tata Sons do demand an urgent re-look, the report added. “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,” the report quoted Vijay Singh as saying, stating the time has come for the listing of Tata Sons.

Singh further said, as quoted by the report, that in case India is to produce fighter aircraft with a foreign partner, a huge investment will be required. Such projects, which are 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 added. Notably, he was on the board of Tata Sons for 12 years till 2025.

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'Tata Trusts have been fractious and turbulent'

Singh believes that Tata Sons needs more transparency and regulatory oversight in view of its size and scale of operations. “The Tata Trusts have been fractious and turbulent in the recent past and there is no guarantee of a better future,” he said, as quoted by the report.

When asked if the IPO will reduce the control of Tata Trusts over Tata Sons, Singh said that he doesn’t think the listing will significantly affect the trusts, which will continue to hold large shareholding, board seats and promoter status. He also dismissed worries around the takeover of Tata Sons by another business group due to its massive size and scale.

The Economic Times couldn’t independently verify the report.

Earlier, Venu Srinivasan backed the idea of a public listing of Tata Sons, the first time that a Tata Trusts trustee publicly supported such a move, saying that the step would be inevitable if the Reserve Bank of India classifies the group holding company as an upper layer non-banking finance company (NBFC), appearing to reflect a widening divergence of opinion at the group's top echelons.

Tata Trusts Vice Chairman Srinivasan told ET that such a move would allow Shapoorji Pallonji (SP) Group to monetise its 18.37% stake in Tata Sons, a long-standing demand of the minority shareholder that's 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," Srinivasan told ET.

The Reserve Bank of India is expected to issue a revised circular on upper-layer NBFCs soon. The RBI's scale-based regulation (SBR) framework for NBFCs is under review. Officials have suggested that Tata Sons may not receive the RBI exemption it has sought from the upper-layer classification to avoid listing.

Against this backdrop, Srinivasan said some trustees may not challenge any regulatory decision on the company's status, even as the unanimous September 2025 resolution to keep Tata Sons unlisted risks coming under strain.

Tata Trusts has majority control of Tata Sons with a stake of about 66%. Amid mounting pressure-including a possible regulatory mandate, demands from the SP Group, and rising internal differences-the Trusts appear to be increasingly divided. One section of trustees sees a listing as inevitable and aligned with shareholder interests, while another remains opposed, favouring an unlisted structure to preserve control and legacy considerations.

The SP Group has been actively pushing for the public listing of Tata Sons, calling it a "moral and social imperative" to ensure transparency and unlock value.

The broader unease within the group has also surfaced in governance matters. An early move to consider a third term for Chandrasekaran, whose current tenure runs until February 2027, was deferred after objections were raised over performance of Chandrasekaran and losses at Air India and Tata Digital at a board meeting by Noel Tata on February 24, 2026, highlighting emerging differences between the Trusts and the Tata Sons board.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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