Shapoorji Pallonji (SP) Group, one of the major shareholders of Tata Sons, has urged the Chairman to consider listing the company on stock exchanges to unlock value for investors.
While lauding Tata Sons chairman N Chandrasekaran for the company’s performance at the recent AGM, the SP Group pointed out that a listing on exchanges will provide Tata Sons access to substantial capital to pursue its vision of investing $90 billion in the next five years.
Tata Sons profit before taxes increased to ₹39,813 crore last fiscal against ₹30,024 crore registered in the previous year.
SP Group holds an 18.37 per cent stake in Tata Sons.
SP Group also advocated for Tata Sons’ IPO listing to unlock further financial benefits for the company, said a source close to the Group.
Surrendering RC
Interestingly, Tata Sons was classified as an upper-layer NBFC by the RBI in September 2022 under the Scale Based Regulatory Framework and was required to be listed by September 2025.
However, Tata Sons late last month voluntarily surrendered its registration certificate to the RBI after repaying over ₹20,000 crore in debt to remain an unlisted entity.
The repayment of ₹20,000 crore marks a substantial reduction in Tata Sons’ liabilities, leaving only ₹363 crore in non-convertible debentures and preference shares.
Additionally, Tata Sons deposited ₹405 crore with the State Bank of India and provided an undertaking to the RBI as part of surrendering its registration certificate. However, the RBI is yet to acknowledge cancellation of its licence.
Unlock value
SP Group recorded its opposition to any efforts of the board to avoid regulatory listing requirements, according to sources.
They insisted that a listing would unlock value and liquidity for all shareholders, including the Trusts, while benefiting millions of public shareholders who have patiently invested in the company.
According to a Kotak Securities report, listing of Tata Sons could result in fund raise of ₹55,000 crore.
Market experts also believe that a Tata Sons IPO could strengthen its financial standing, increase shareholder engagement, and fuel further growth for the company.
