Struggle between Trust and Board on the listing of Tata Sons: Noel Tata said – If we enter the stock market, the competition for profits will increase, charity will be left behind.

Tata Trusts Chairman Noel Tata has expressed concern over the discussions about listing Tata Group’s main company ‘Tata Sons’ on the stock market. He said that if the company gets listed in the stock market, it can change the old way and principles of working of Tata Group.

Noel Tata said that after going public, when 30 to 40 thousand new shareholders of the company will become, then the emphasis will increase on earning profits instead of social service and charity.

At an event on Saturday, he said that Tata Trusts will discuss this issue with the government and regulators, so that a way can be found that maintains the real identity and service spirit of the Tata Group.

Differences regarding listing between two major shareholder companies of Tata Group

This statement of Noel Tata has come at a time when there is a tussle within the company regarding the ownership and control of Tata Sons. Tata Trusts, which holds about 66% stake in Tata Sons, is opposing the listing in the stock market.

At the same time, the second largest shareholder Shapoorji Pallonji Group, which holds 18.37% stake in the company, is in its favor. Shapoorji Group wants the company to go public, so that it can withdraw money from the market in exchange for its investment.

Confusion increased due to RBI rules, differences on Chandrasekaran’s new tenure also

This controversy escalated further in September 2026, when the Reserve Bank (RBI) rejected the application of Tata Sons through which the company wanted to avoid listing in the stock market. Actually, according to RBI rules, it is necessary for big financial companies to be listed in the stock market.

After this, in the board meeting held on September 17, Tata Sons decided to start preparations for listing as per the rules and give a new term of 5 years to Chairman N Chandrasekaran.

The board passed the decision with a 4:1 majority, but Noel Tata opposed both the listing and Chandrasekaran’s reappointment. The Trust has also raised questions on the manner of his re-appointment.

More discipline needed to complete big projects on time

Noel Tata said that our direction of working for social service (philanthropy) and development of the country is absolutely right, but there is a need for more discipline in completing big projects on time and in proper utilization of money.

He said that Tata Group is a partner in the development of the country and is also setting up its first semiconductor project and first EV battery plant.

Starting price of Judio clothes from ₹199 for 10 years

Noel Tata also talked about the success of the group’s retail business Trent, which runs popular stores like Westside and Judio.

He told that Judio was started in 2016 to fulfill the passion of common and low income people for good clothes.

This brand, which started with large air-conditioned stores, has kept the starting price of clothes at ₹ 199 for the last 10 years.

Regarding Westside, he said that initially people were doubtful whether such stores would run in India or not, but the strategy of creating one’s own brand (private-label) was successful.

Today Westside has about 320 stores in the country and the company is going to increase them to more than 500.

Disagreement within the trust: Some members in favor of listing

On the other hand, Tata Trusts Vice-Chairman Venu Srinivasan and some other members are in favor of launching Tata Sons in the stock market.

He believes that listing will increase transparency in functioning, strengthen the decision making system and reveal the true market value of the group.

In a letter to a fellow trustee on November 11, Srinivasan and vice-chairman Vijay Singh cited the example of global giants Hershey and Novo Nordisk.

He said that companies can be listed in the stock market even while being under the control of the trust. Tata Group’s listed companies like TCS, Tata Steel and Tata Motors are already doing the same.

Knowledge Box: What is RBI’s upper-layer NBFC rule?

According to Reserve Bank of India (RBI) rules, it is necessary for the country’s largest financial companies (upper-layer NBFCs) to be listed in the stock exchange within 3 years. Tata Sons also falls in this big category. To avoid listing, the company had applied to surrender its special financial license (CIC registration), which was rejected by the RBI.

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