The 107th Annual General Meeting (AGM) of Tata Sons marked a notable shift in shareholder relations as the Shapoorji Pallonji (SP) Group, which holds an 18.37% stake in the Tata group’s holding company, voted in favour of all resolutions—unlike in previous years, when it either abstained or opposed certain proposals.
Key approvals included:
- Appointment of Noel Tata to the Tata Sons board.
- Reappointment of Venu Srinivasan and Saurabh Agrawal as directors.
- Appointment of Anita George, cofounder and CEO of Prosperete, as an independent director.
This was the first AGM since the passing of Ratan Tata in October 2024. Noel Tata, Ratan Tata’s half-brother and chairman of Tata Trusts (holding 66% in Tata Sons), attended along with his children Leah, Maya, and Neville. The meeting, led by chairman N Chandrasekaran, lasted only about 20 minutes—among the shortest in recent years.
SP Group–Tata Sons Relations Improving
Following years of strained ties since the ouster of Cyrus Mistry as Tata Sons chairman in 2016, recent months have seen Chandrasekaran and SP Group chairman Shapoor Mistry hold multiple discussions—their first formal interactions in years.
Sources say the SP Group remains optimistic about Tata Sons’ growth under Chandrasekaran and is open to constructive engagement.
Preliminary talks have begun on potential exit options and monetisation avenues for SP Group’s stake in Tata Sons, which is currently pledged with lenders. SP Group has also suggested considering an IPO as a possible way to unlock shareholder value.
Tata Group Financial Performance
Over the past five years, Tata Group has nearly doubled revenue and more than tripled net profit and market capitalisation, investing ₹5.5 lakh crore to become “future fit.”
- FY25 revenue (all listed & unlisted entities): ₹15.3 lakh crore
- Net profit: ₹1.1 lakh crore
- Market cap: ₹37.8 lakh crore
Chandrasekaran, in the Tata Sons annual report, said the group has focused on updating strategies “that may have aged poorly with time” with a ‘fitness first, velocity next’ approach.
Regulatory Developments
Last year, SP Group had raised concerns about not being consulted when Tata Sons applied to the Reserve Bank of India for deregistration as an Upper Layer Core Investment Company (UL-CIC). As per RBI rules, NBFC-UL entities must go public by September unless exempt.
Tata Sons has since cleared all debt to meet the criteria for exclusion from this category. The RBI is reviewing the deregistration application.
Path Ahead
With longstanding disputes softening after the deaths of Ratan Tata (2024) and Cyrus Mistry (2022), insiders believe the atmosphere is now conducive for mutually agreed solutions, including a potential SP Group exit from Tata Sons.
