Tata Sons, the holding company of 31 group companies including TCS, Tata Motors and Tata Steel, is facing pressure to go public - a discussion likely to come up at a board meeting on Saturday of two trusts that are major shareholders.
Until now, Tata Sons has remained unlisted. But there is now pressure to list from internal stakeholders, including its second largest shareholder, the Shapoorji Pallonji (SP) Group. Rules from the Reserve Bank of India may also require them to list unless they can secure an exemption.
What is the structure of the Tata Group
The 108-year old salt-to-steel conglomerate is uniquely structured, where a combine of philanthropic organisations broadly known as the Tata Trusts hold 66 per cent in Tata Sons. Debt ridden-construction and infrastructure conglomerate SP Group holds 18.4 per cent of the company.
The Tata Trusts comprise 13 entities, seven of which directly hold shares in Tata Sons. The board of Tata Trusts consists of six trustees drawn from these entities.
