Tata Sons board approves IPO preparations, five-year extension for Chandra

The Tata Sons board meeting on September 17 approved the process to begin the IPO and a five-year extension for Chairman N. Chandrasekaran, despite Noel Tata’s veto vote. Tata Trusts chairman Noel's veto has been countered by Trusts vice chairman Venu Srinivasan, say insiders. Finally, the board decided to vote on the IPO and the extension matter and approved the IPO.

The board meeting brought into focus an increasingly sharp divide between Noel Tata and vice chairman Venu Srinivasan, with the two Trust nominees on opposite sides of key questions concerning the future of the holding company. Srinivasan, who is part of the nomination and remuneration committee (NRC), backed the continuation of N. Chandrasekaran as chairman, while Noel Tata remained opposed to the move, even as Chandrasekaran had earlier decided to move out of the system. Noel Tata wanted Tata Sons to pursue keeping the company private and select a new chairman, said sources.

The board’s agenda included an update from the NRC and the RBI’s decision rejecting Tata Sons’ request to surrender its CIC registration. The NRC comprises Srinivasan, Harish Manwani and Anita Marangoly George. Manwani and George were among the board members who supported Chandrasekaran’s continuation when the issue was discussed in February 2026. The board deferred the matter after Noel Tata raised concerns over the performance and capital allocation of businesses including Air India and the new-age ventures.

Differences beyond Chandrasekaran's tenure

The differences between Noel and Srinivasan go beyond Chandrasekaran. Srinivasan, besides minority shareholder Shapoorji Pallonji Group, had publicly supported the listing of Tata Sons, while Noel Tata maintained that the holding company should remain private.

Chandrasekaran’s current tenure ends in February 2027. The board members pointed out the requirement of using Chandrasekaran’s experience and reputation while going for listing.

Noel Tata and Srinivasan are nominees of the Trusts holding veto power over Tata Sons' decisions. The sources said both of them used their vetos for and against the matters, and it eventually went for a vote among the board members.

The Trusts-level contest also involved Srinivasan’s position as a nominee director. Fortune India had reported on May 7 that Srinivasan was due to turn 75 in December and that the Trusts would have to decide whether to extend his nomination or replace him. The report noted that the Trusts had moved a resolution in October 2024 that required the review of nominee directors who reach 75. Bhaskar Bhat was among the names associated with the Trusts’ board.

That possibility assumes significance because Noel Tata and Srinivasan hold veto power in Tata Sons. Fortune India’s September 17 report describes the confrontation as a “war of two vetoes”: Noel Tata holds veto power on behalf of Tata Trusts over decisions of the holding company, while Srinivasan is the other Trust nominee at Tata Sons.

The September 17 meeting thus brings together several unresolved issues: Chandrasekaran’s proposed exit, the RBI’s insistence on Tata Sons remaining within the upper-layer NBFC framework, the possibility of a listing, and the balance of power between Noel Tata and Venu Srinivasan. With Harish Manwani and Anita Marangoly George having backed Chandrasekaran earlier, Noel Tata entered the meeting without support from the other Tata Sons board members on the chairman’s continuation, according to Fortune India’s September 15 report.

Noel Tata told the Tata Sons board that Chandrasekaran’s decision not to seek another term had been accepted by the Tata Trusts and had “attained finality”, arguing that the succession process should now begin. In his written statement, Noel said Chandrasekaran had informed the board that he would step down, and that the decision was neither sought by the board nor based on a board resolution. He said the Trusts, which hold about 66% of Tata Sons, had accepted the decision and asked the company to constitute a selection committee under its Articles of Association to identify a successor.