Tata Trusts asks Tata Sons to approve rejig proposal, keep it private

The Tata Trusts has outlined a reorganisation of Tata Sons, the holding company of Tata Group companies which when given effect would ensure it would neither be a non-banking financial company or a core investment company.

A statement from Tata Trusts said it has already written to the Tata Sons Board to consider and approve the proposal. It further asked Tata Sons board to take necessary steps including applying to the Reserve Bank of India for the necessary “no-objection certificate” for the reorganisation.

The Tata Trusts hold 66% stake in Tata Sons.

Tata Trusts said the proposed reorganisation essentially entails the merger of “Tata Electronics Systems Solutions Private Limited’ (TESS) and ‘Tata Consulting Engineers ‘(TCE) with Tata Sons.

The Trust also noted that along with Tata Sons, it will engage with the RBI on all aspects of the proposed reorganisation.

This has become the latest flashpoint between Tata Sons and Tata Trusts. Noel Tata, chairman of Tata Trusts, opposed the reappointment of N Chandrasekaran as chairman of Tata Sons. Meanwhile, the Tata Sons board has decided to pursue a public listing in line with the Reserve Bank of India’s directive.

Tata Trusts said the proposed strategic reorganisation of Tata Sons’ business and operations is not a new pathway. It noted that for almost 80 years of its 100-year existence, Tata Sons has had operating businesses and operating revenues, which enabled it to fund other, newer business ventures.

It said the proposed reorganisation will result in Tata Sons reverting to its previous operating model, with its own operations and revenues, in addition to being a holding company for the Tata Group. This will also be in line with the previous classification (after 2004) by the RBI of TSPL as a “non-banking, non-financial company”.

Tata Trusts noted that the proposed amalgamation and consequential steps are in line with regulatory compliance requirements and the unanimous resolutions passed by the Boards of Sir Dorabji Tata Trust and Sir Ratan Tata Trust in July 2025 wherein it was agreed that all endeavours should be made to ensure that the status of Tata Sons as an unlisted private company should continue.

“It also has the advantage of preserving the more than 100-year-old distinctive and unique organisational structure of the Group, which has always focussed on long term strategic initiatives geared towards nation building and the welfare of the disadvantaged and the excluded,” it noted.