Tata Sons AGM marks SP Group thaw, Noel Tata joins board

The Tata Sons annual common assembly (AGM) noticed Shapoorji Pallonji (SP) Group okaying all resolutions, resulting in their unanimous approval, marking one other advance within the thawing relations between the minority and majority shareholders.In earlier years, SP Group, which holds 18.37% within the Tata group holding firm, has both abstained from voting or objected to some resolutions. Tata Sons voted to nominate Noel Tata to the board and permitted the reappointment of Venu Srinivasan and Saurabh Agrawal as administrators. It additionally permitted Anita George, cofounder and chief govt of rising markets progress fund Prosperete, as an unbiased director.

Notably, this was the primary AGM held because the passing of Ratan Tata in October final 12 months. His halfbrother, Noel Tata, is chairman of Tata Trusts, which holds a controlling 66% stake in Tata Sons. This was the corporate’s 107th AGM.

Tata Sons has initiated early discussions with SP Group.

Preliminary Talks
They’re exploring potential exit choices and monetisation avenues within the unlisted holding firm, at present pledged with lenders. Individuals near SP Group stated it was optimistic about progress underneath the management of Tata Sons chairman N Chandrasekaran, and is wanting ahead to constructive involvement.Chandrasekaran met SP Group chairman Shapoor Mistry just a few instances within the latest previous, they added. These have been the primary formal interactions between the 2 sides since ties soured following the ouster of the late Cyrus Mistry, Shapoor’s brother, as Tata Sons chairman in 2016. The talks are stated to be preliminary.Tata Group almost doubled income and greater than tripled internet revenue and market cap over the previous 5 years, when it spent Rs 5.5 lakh crore to be “future match” and has sought to change methods that “could have aged poorly with time and altering financial circumstances,” adopting a “health first, velocity subsequent” mantra, Chandra sekaran stated within the newest Tata Sons annual report. Group income from all listed and unlisted entities was Rs 15.3 lakh crore in FY25, with internet revenue at Rs 1.1 lakh crore and market cap at Rs 37.8 lakh crore, it stated. Tata Sons and SP Group didn’t remark.Thursday’s AGM at Bombay Home was led by Chandrasekaran and attended by Noel Tata and his youngsters Leah, Maya and Neville on behalf of the smaller trusts. This was among the many shortest AGMs in years, at about 20 minutes, stated the folks cited.

Mehli Mistry attended as a consultant of the Sir Ratan Tata Belief and Vijay Singh as a consultant of the Sir Dorabji Tata Belief. Mistry, additionally one of many executors of Ratan Tata’s will, proposed the appointment of Noel Tata as director and the passing of accounts. Ultimately 12 months’s AGM, SP Group had expressed dissatisfaction over not being knowledgeable about Tata Sons’ determination to use to the Reserve Financial institution of India for deregistration as an Higher Layer Core Funding Firm (UL-CIC). It had additionally voiced issues about being ignored of deliberations on the Tata Trusts’ decision that Tata Sons stay an unlisted personal firm. In January, RBI stated in its annual report that it was reviewing Tata Sons’ software for deregistration from the UL-CIC class.

As per laws, firms categorized as NBFC-UL are required to go public by September. Tata Sons had cleared all its debt obligations to fulfill the eligibility standards for exclusion from this class.

Following Ratan Tata’s demise, longstanding tensions between the 2 teams have been easing, in accordance with folks near them. Cyrus Mistry died in 2022 in a highway accident. Noel Tata is married to the sister of the Mistry brothers. There at present seems to be room for constructive dialogue, doubtlessly paving the way in which for a mutually agreed exit for the Mistry household from Tata Sons, stated the folks cited. SP Group has prompt Tata Sons contemplate the opportunity of an IPO as a path to unlock worth for shareholders, in accordance with folks within the know.

Noel Tata, who grew to become chairman of Tata Trusts in October 2024, was nominated to the Tata Sons board by the trusts. He had been appointed extra director final 12 months.