Cyrus Mistry News

Tata Sons is understood to be preparing for multiple scenarios, including a possible initial public offering (IPO), to ensure readiness amid growing pressure from 18.4% stakeholder, the Mistry family's Shapoorji Pallonji (SP) Group, to consider a share sale, said people with knowledge of the matter. Tata Sons is the holding company of the Tata Group. Tata Sons, Tata Trusts and the SP Group did not comment on the matter.

Ratan Tata and Cyrus Mistry is well-documented, marked by a series of pivotal moments that ultimately led to Mistry's dismissal as Chairman of Tata Sons in 2016. As reported by TOI, a newly released biography, Ratan Tata: A Life, authored by Thomas Mathew, sheds light on the intricate dynamics that characterized their professional relationship.

Ratan Tata began having second thoughts about Cyrus Mistry's 'suitability' as chairman-designate of Tata Sons by the end of the first year of apprenticeship under him to give insights and hands-on experience on how to run the group, even before the latter formally taking over the position fully, according to a newly released book. Tata 'suffered more' than Mistry 'in a way' from the decision to sack his successor as Chairman of Tata Sons in October 2016, claimed a biography of the late veteran industrialist and philanthropist — Ratan Tata A Life — authored by Thomas Mathew and published by HarperCollins Publishers. Late Mistry was chosen in 2011 after a global search by a selection committee to succeed Tata — who retired as Chairman of Tata Sons in December 2012 — with his full endorsement, despite apprehensions and reservations expressed by group veterans. For a year Mistry was the 'Chairman designate' before he took over as Chairman of Tata Sons after Tata's retirement. While approving the recommendation of the selection panel, Tata had two observations while nodding Mistry as his successor. He wanted Mistry, who was then the MD of Shapoorji Pallonji Group with interests similar to the Tatas such as construction, real estate, textiles, engineering goods, and power among others to 'severe all relations' with the company by creating a separation that would be 'legal and tenable'.

Mistry family's Shapoorji Pallonji (SP) Group, which holds an 18.37% stake in Tata Sons, suggested that the Tata Group holding company explore the possibility of an initial public offering (IPO) to unlock value for stakeholders, according to people with knowledge of the matter. At the Tata Sons annual general meeting (AGM) held on Monday, the SP Group also praised the strong performance of group companies under the leadership of the executive team headed by chairman N Chandrasekaran, suggesting that ties between the two sides may have become less frosty.

It was common once for the word ‘conglomerate’ to be prefixed by ‘unwieldy’ and ‘unfocused’ by reflex. If that sounds strange today, then the Tata Group could claim some credit for it. Sure, survival amid competition demands an edge sharpened in focal fields of specialization, and Tata did withdraw from some markets in the 1990s (soaps and suds, for example), but its operations still span a spectrum from salt to software.

Shapoorji Pallonji (SP) group, which holds about 18% stake in Tata Sons, is unlikely to hold any adversarial position during the latter's annual general meeting (AGM) to be held on August 29. This will be the first Tata Sons AGM after the demise of Cyrus Mistry, former chairman of the Tata holding company, in a road accident last year. The SP Group's Cyrus Investments and Sterling Investment Corp holds an 18.4% stake in Tata Sons.