Tata Trusts backs Chandrasekaran for five more years, pushes to keep Tata Sons private

The Tata Trusts board, led by Noel Tata, has instructed Tata Sons Chairman N. Chandrasekaran to ensure the company remains an unlisted private entity, and also approved a five-year extension of his chairmanship at a board meeting held on 28 July, The Economic Times reported.

This directive regarding Tata Sons’ unlisted status was issued following the trustees’ unanimous decision that the company should “exercise best endeavors” to maintain its private status and fully engage with the Reserve Bank of India (RBI) on the matter.

The resolution extending Chandrasekaran’s term was passed after a discussion on the Tata group companies’ performance and plans.

His experience and leadership would help steer the group through a critical phase of consolidating and scaling its new businesses, a person aware of the developments told ET.

The Trusts also instructed Tata Sons to continue discussions with the Shapoorji Pallonji (SP) Group, the company’s largest minority shareholder, to facilitate its exit.

In September 2022, the Reserve Bank of India classified Tata Sons as an Upper-Layer Non-Banking Financial Company (NBFC-UL). Under this classification, Tata Sons must meet stringent regulatory requirements, including mandatory listing, unless specifically exempted by the RBI.

Tata Sons, however, has formally requested deregistration from this classification.

The SP Group owns an 18.38% stake in Tata Sons through Cyrus Investments Pvt. Ltd and Sterling Investment Corp. Pvt. Ltd. These shares have been pledged as collateral for loans. If lenders invoke those pledges, Tata Sons has the first right to buy them. Helping the SP Group exit is integral to the Trusts’ strategy to retain Tata Sons’ private, unlisted status.

Together, the Tata Trusts control nearly 66% of Tata Sons through the Sir Dorabji Tata Trust (27.98%) and the Sir Ratan Tata Trust (23%).

In fiscal 2025, the group reported total revenues of ₹15.34 trillion and a net profit of ₹1.13 trillion. Tata Sons alone generated ₹5.92 trillion in revenue, although its net profit declined 17% to ₹28,898 crore. The group’s overall market capitalization stood at ₹37.84 trillion, with ₹14.28 trillion accounted for by its listed companies.