October 15, 2025

Tata Trusts has created a buzz by clarifying that it will not support the listing of Tata Sons right now. Why? It worries that listing could affect its power to vote on important Tata Sons decisions. This is a direct clash with the Shapoorji Pallonji (SP) Group, which owes a whopping ₹52,000 crore debt and sees the listing as a lifesaver to raise cash. Sources close to the matter say Tata Trusts is ready to talk about a smooth, friendly way for the SP Group to step out of Tata Sons over time. The Trusts believe that SP's debt troubles are self-made and cannot be fixed by simply listing Tata Sons. The Trusts also feel the listing request is a sneaky move. It’s not only about helping SP Group get money but also about weakening Tata Trusts’ special power as the majority shareholder under Tata Sons’ rules. According to insiders, this power is crucial for holding the group’s balance. Remember, last Friday, the SP Group made a strong public push for the listing, stressing its urgent need to raise funds to handle its massive dues. It owns about 18.4 percent of Tata Sons but faces a huge debt burden. Here's a key legal point: Article 75 of Tata Sons’ Articles of Association gives Tata Trusts the first right to buy SP Group’s shares. This agreement dates back to 1964 and was backed by the Supreme Court in 2021. Listing Tata Sons means the company would have to follow stock market voting rules — like majority of minority voting — which limits what big shareholders like Tata Trusts can decide. This worries the Trusts about why SP Group is pushing so hard for listing now, suspecting it’s about control, not just cash. In short, Tata Trusts stands firm: no listing now, protect the group’s voting powers, and find a fair exit plan for SP Group. The drama over Tata Sons listing continues, with giant stakes and big money on the table!

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Tags: Tata trusts, Tata sons listing, Shapoorji pallonji group, Sp group debt, Shareholding, Corporate governance,