Tata Sons to go public: A look at years of legal and regulatory hurdles

Tata Sons' board has cleared a listing plan after years of legal and regulatory hurdles. Here's a look at the key events that shaped the Tata group holding company's road to the IPO

The Tata Sons board on Thursday approved a plan to list the group’s holding company amid a renewed push from the Reserve Bank of India (RBI) for it to meet the listing requirement applicable to an upper layer non-banking financial company (NBFC). Tata Trusts chairman Noel Tata was outvoted by other board members on the listing issue.

The listing has been at the centre of differences between Tata Sons’ major shareholders. Tata Trusts, which holds about 66 per cent of Tata Sons, has opposed an initial public offering (IPO), while the Shapoorji Pallonji (SP) Group, which owns around 18.4 per cent, has pushed for a listing, arguing that it would help unlock value and improve liquidity.

The board also approved a five-year term for N Chandrasekaran as chairman. Chandrasekaran’s reappointment marks a reversal of his position last month that he would not seek another term after his current tenure ends on February 20, 2027. In August, he had said he would not offer himself for reappointment, citing continued uncertainty over the leadership for six months after the board failed to decide on extending his tenure at its February meeting.

Here is how the Tata Sons listing dispute unfolded:

Sept 2017: Shareholders approve private-company status

On September 21, 2017, Tata Sons shareholders approved the conversion of the group holding company from a deemed public company into a private limited company.