Is the Mistry family against negotiating its exit from Tata Sons with N. Chandrasekaran?

The board meeting of the Tata Trusts on Friday concluded without incident, as the two factions—led by Noel Tata and Mehli Mistry—confined their discussions to the official agenda, focussing mainly on the Trusts’ philanthropic activities. The conciliatory tone followed a high-level meeting earlier this week between Noel Tata, Tata Sons chairman N. Chandrasekaran, Union Home Minister Amit Shah, and Finance Minister Nirmala Sitharaman, which appears to have helped cool tensions within the Trusts.

However, a fresh twist emerged later in the day when the Shapoorji Pallonji (SP) Group, the largest minority shareholder in Tata Sons, issued a press statement reiterating its long-standing demand for the public listing of Tata Sons. The statement said that in light of recent developments within Tata Trusts, it was “both timely and necessary to restate our position—one rooted in transparency, fairness, public interest, and adherence to the principles of good corporate governance”.

The SP Group, which has been under financial pressure and is eager to reduce its debt burden, argued that the Tata Trusts would also benefit from a listing. The Shapoorji Pallonji family owns an 18.37% stake in Tata Sons, while Tata Trusts collectively hold about 66%.

Interestingly, on July 28, 2025, the Tata Trusts passed a resolution extending Chandrasekaran’s term as chairman of Tata Sons for another five years. In the same meeting, the trustees had asked him to facilitate the SP Group’s exit from Tata Sons while engaging with the Reserve Bank of India (RBI) to ensure that the holding company remains a private entity. Reports suggest that Chandrasekaran had initiated preliminary discussions with SP Group chairman Shapoor Mistry to explore possible terms of the exit.

In this context, the SP Group’s renewed demand for listing Tata Sons indicates that it may not be interested in pursuing a privately negotiated settlement for its stake.

The timing of this statement has raised eyebrows. In the previous Tata Trusts board meeting, trustees were divided over the reappointment of Vijay Singh as a Tata Sons board nominee. Trustees Mehli Mistry, Darius Khambata, Jehangir H.C. Jehangir, and Pramit Jhaveri opposed Singh’s reappointment, proposing Mehli Mistry instead. Noel Tata and Venu Srinivasan disagreed, and Singh ultimately lost his position after a contentious vote. The disagreement reportedly escalated into a heated exchange, underscoring the rift within the board.

Now, the larger question looms—will this renewed outside pressure disturb the fragile calm within Tata’s inner circle? A senior Tata ggroup executive questioned the SP Group’s intentions: “What exactly are they trying to achieve? Ratan Tata’s vision was to keep Tata Sons unlisted so that the Trusts could retain control over the group’s direction. However, the SP Group claims their position aligns with Jamsetji Tata’s ideals, framing this as Jamsetji versus Ratan Tata.”

Tata Sons currently has two nominee directors from Tata Trusts—Noel Tata and Venu Srinivasan—who hold veto powers under Article 121 of the company’s Articles of Association.

The Trusts, in its previous meeting, had unanimously decided to keep Tata Sons private. With the SP Group reviving its call for a listing, it remains to be seen whether Chandrasekaran’s ongoing efforts to negotiate the group's exit can continue, or if the stalemate will deepen further.