Former Solicitor General of India, Harish Salve, has strongly endorsed the public listing of Tata Sons, describing the conglomerate as “the face of India.” Speaking from London, Salve argued that a public entity status is the natural and necessary path forward for an enterprise of Tata Sons' national and global scale, especially given its involvement in sensitive sectors like aviation, defense, and green hydrogen.
Transparency and Professional Governance
Salve emphasized that Tata Sons, controlling assets worth an estimated Rs 2 lakh crore, cannot afford to be hindered by internal trustee disagreements. He highlighted recent governance battles and deadlocks within the board as evidence of the need for institutional evolution. “Tatas today are not even an institution. Tatas today are the face of India. It is India's largest corporate enterprise with the highest rating in ethics, governance, and management,” Salve stated, advocating for a structure that ensures transparency and attracts the best talent for the nation's benefit.
According to Salve, converting Tata Sons into a public company would dismantle restrictive clauses in its Articles of Association, paving the way for a stock exchange listing. This move, he believes, would ensure greater transparency across its critical operations.
Tata Trusts' Opposition and Alternatives
Despite Salve's strong stance, resistance to the public listing primarily comes from Tata Trusts, which holds a controlling 66 percent stake in Tata Sons. Chairman Noel Tata leads the opposition, arguing for the preservation of the conglomerate’s century-old structure rather than subjecting it to direct public market scrutiny. Tata Trusts has challenged unilateral board resolutions, asserting that all options, not just a listing, should be thoroughly explored.
Noel Tata has also proposed an alternative: a Rs 25,000-crore equity buyout of minority shareholders, seeking to keep the holding company closely held.
Shapoorji Pallonji Group Supports Listing
In contrast to Tata Trusts, the Shapoorji Pallonji (SP) Group, a minority shareholder with an 18.37 percent stake, has welcomed the push for a public listing. The SP Group aligns with the Reserve Bank of India’s regulatory pressure for the move, viewing an initial public offering as crucial for establishing fair value, restoring shareholder transparency, and securing long-term governance stability for the conglomerate.