Tata Trusts chairman says Tata Sons revamp could help avoid listing
Tata Trusts chairman says Tata Sons revamp could help avoid listing Sept 29 (Reuters) - The chairman of Tata Trusts said on Tuesday the charity's proposed reorganisation of Tata Sons complies with Reserve Bank of India guidelines and could spare the salt-to-software conglomerate a stock market listing.
Tata Trusts, which owns 66% of Tata Sons, on Monday proposed merging two Tata Group companies with the holding company, as the charity seeks to sidestep a Reserve Bank of India requirement that Tata Sons list its shares.
"We hope the Reserve Bank of India will engage with us on this and find a solution to avoid listing," Noel Tata, chairman of Tata Trusts, said at an event by Indian television channel Republic TV.
The proposal follows an unusually public rift between Tata Trusts and Tata Sons, with the charity pushing back against both the reappointment of Tata Sons Chairman N. Chandrasekaran and a proposed listing of the holding company, which controls more than 30 Tata Group companies.
Noel Tata said a listing would alter the way Tata Sons has operated for more than 150 years.
A public listing would subject Tata Sons to greater market scrutiny, disclosure requirements and minority-shareholder oversight, potentially diluting the influence Tata Trusts has long exercised over the group's strategy.
A listing would add pressure on the company to perform every quarter to meet shareholders' expectations, which "could impact" the group's philanthropic efforts, Tata added.
(Reporting by Anuran Sadhu and Jayshree P Upadhyay; Editing by Tasim Zahid)
((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))