The Tata Group, one of India’s largest and most respected business conglomerates, is facing growing internal differences over whether its parent company, Tata Sons, should be listed on the stock market. Tata Sons is the unlisted holding company that controls the Tata Group’s vast network of businesses — including Tata Steel, Tata Motors, Tata Consultancy Services, and Air India. According to its 2024–25 annual report, it holds stakes in 355 subsidiaries, 39 joint ventures, and 48 associate companies, and received Rs 36,149 crore in dividends from them last year, reported Mint

Because Tata Sons is unlisted, its shareholders cannot easily sell or “monetize” their holdings. The SP Group, which has been part of Tata Sons since the 1930s, has long wanted a listing to unlock the value of its stake — estimated between Rs 1.5 trillion and Rs 3 trillion, said reports.

The Core Dispute

The SP Group’s demand for listing gained momentum after its representative, Cyrus Mistry, was removed as Tata Sons chairman in 2016, a move that led to a bitter legal and personal fallout between the two groups.

The SP Group, which faces significant debt in its construction and infrastructure businesses, sees the listing as a way to raise funds and strengthen its finances. Earlier this year, credit rating agency ICRA reaffirmed a ‘BBB’ rating with a negative outlook for Shapoorji Pallonji and Company Pvt. Ltd., pointing to continued pressure on liquidity, said reports.

In contrast, Tata Trusts, which uses its dividends from Tata Sons to fund large-scale philanthropic projects, has no such financial pressure. In 2024–25, it disbursed Rs 902 crore in grants, with most funds directed to social and institutional programs. The Trusts also influence key decisions within Tata Sons, including top appointments and governance matters, and want the group to retain its private, long-term structure. Meanwhile, as per PTI reports, Tata Trusts has circulated a proposal to reappoint Mehli Mistry as a trustee for three of its key philanthropic bodies, a move that would make him a lifetime trustee. 

RBI’s Role and the Listing Deadline

The Reserve Bank of India (RBI) added to the tension in September 2022, when it classified Tata Sons as an “upper-layer” non-banking financial company (NBFC) — a category that required the company to list its shares within three years, by September 2025.

However, Tata Sons moved to avoid that requirement by retiring debt and surrendering its NBFC licence earlier this year. This would allow it to remain a privately held company. The company is currently awaiting RBI’s approval for its deregistration.

The RBI’s silence on the matter since then has raised eyebrows among market watchers, with some questioning whether the central bank will enforce the original listing rule or allow Tata Sons to remain private.

What’s At Stake

According to experts, for the SP Group, listing Tata Sons could unlock much-needed value and ease its debt burden. In a recent statement, the group called the listing a “moral and social imperative,” arguing that it would “unlock immense value for over 1.2 crore shareholders of listed Tata companies who indirectly have a stake in Tata Sons.”

The Shapoorji Pallonji (SP) Group has renewed its call for public listing. In a strongly worded statement, the group described the IPO as “a moral and social imperative”, saying it would “unlock immense value for over 1.2 crore shareholders of listed Tata companies.

For Tata Trusts, however, a public listing could mean less control over the company that anchors the entire Tata empire. The Trusts’ leadership believes the current structure — where dividends from Tata companies fund its philanthropic work — best preserves the vision of Jamsetji Tata, the group’s founder, noted analysts.

Last Updated:October 24, 2025, 18:16 IST

ICRA Analytics reports 65.30 percent retail investors used Non-Associate Distributors, while 27.37 percent invested directly.

Retail Investors Prefer Distributor Route; Direct Investments at 27.37%: ICRA Analytics

Approximately 27.37% of retail investors opted for direct investments, while 65.30% of retail investors came through the route of Non-Associate Distributors as of September 30, according to ICRA Analytics. Additionally, 47.70% of the mutual fund industry’s assets were invested directly and 45.96% came from Non-Associate Distributors, ICRA Analytics added.

Direct investment refers to investment directly with the mutual fund company (AMC), where there is no commissions or intermediary fees, making the expense ratio (cost of managing the fund) lower.

Data from AMFI showed that 19% of the assets of the mutual fund industry came from B30 locations in Sep 2025. Assets from B30 locations increased from Rs 14.14 trillion in Aug 25 to Rs 14.50 trillion in Sep 25, representing growth of 2.6%. B30 means Beyond Top 30 cities, including all other smaller towns and cities outside those top 30 (T30) cities.

Assets from T30 locations also grew 14% on a yearly basis in Sep 2025.

B30 location continued to tend towards equity assets. “Nearly 76.60% of the assets from B30 locations are in equity schemes and 9.12% in balanced schemes in Sep 2025,” ICRA Analytics added.

Close to 11.67% of the assets from B30 location are in debt-oriented schemes, while the same from T30 location accounts for 30.39%.

Nearly 28.90% of High Net Worth Individual (HNI) assets were directly invested.

ICRA Analytics earlier said that domestic equity markets rose following robust macroeconomic indicators, as India’s economy expanded by 7.8% YoY in Q1 FY26, marking the strongest growth in five quarters, while the Services PMI surged to 62.9 in Aug 2025. its highest level in over 15 years, driven by a sharp rise in new orders and resilient demand.

Sentiment was further boosted as the GST Council simplified the existing four tax slabs (5%, 12%, 18%, 28%) into a two-rate structure of 5% & 18% and proposed a special 40% slab for select luxury items such as high-end cars, tobacco, and cigarettes. Gains extended after the U.S. Federal Reserve delivered its first rate cut of the year in Sep 2025, citing recent weakness in the labor market. However, overall gains were capped amid lingering uncertainty over India–U.S. trade negotiations and continued foreign institutional investor outflows from domestic equities.

Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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