Tata Sons Pvt. is said to have approved going public and asked Chairman Natarajan Chandrasekaran to stay on for five more years, as one of India’s biggest business houses tries to keep leadership steady through the transition. The board proposed heeding the Reserve Bank of India’s directive on pursuing a listing, according to people familiar with the matter.
The directors also asked Chandra, as he’s widely known, to stay on to steer the sprawling group, the people said, asking not to be identified discussing internal company matters. Shares of Tata Group stocks surged. Tata Chemicals Ltd. shares jump as much as 13%, while Tata Motors Passenger Vehicles Ltd.
gained 4.7%. Chandra last month said he plans to leave when his term ends in February 2027. His decision followed months of friction with Tata Trusts Chairman Noel Tata over the listing issue and capital allocation across the sprawling conglomerate. Representatives for Tata Sons, the holding company of Tata Group, did not immediately respond to an email seeking comments.
The leadership question comes at a sensitive moment. Tata Sons was confronted with a mandatory public float push, which entails tighter regulatory oversight. For Tata Trusts, which own 66% of Tata Sons, a listing risks diluting their control and weakening the board’s ability to fend off hostile takeovers.
The RBI rejected Tata Sons’ earlier plea for an exemption from initial public offer. The RBI had also filed a caveat in the Bombay High Court to ensure its position is heard before any order is passed should Tata Sons seek legal relief. Meanwhile, minority shareholder Shapoorji Pallonji Group had been advocating for a listing for months, saying it is essential to unlock value for investors.
SP Group holds an 18.4% stake worth billions of rupees and a listing would help it monetize its stake and reduce costly debt.