- Tata Sons approved a five-year extension for Chairman N Chandrasekaran
- The board also approved a proposal for Tata Sons' public listing
- Noel Tata used his veto power to block both key board resolutions
The Tata Sons board on Thursday backed two critical resolutions—paving the way for a fresh five-year extension for Chairman N Chandrasekaran and greenlighting a proposal for the holding company's public listing, sources told NDTV Profit.
However, the sweeping moves face an immediate roadblock. Sources reveal that Noel Tata, who holds veto rights on the board on behalf of Tata Trusts, disagreed with both proposals and has invoked his veto power to block the resolutions.
The dramatic developments come just days after the Reserve Bank of India rejected Tata Sons' request to surrender its upper-layer NBFC status, effectively mandating a stock market debut. The board's push for a five-year extension is also a significant reversal, as Chandrasekaran—whose current term ends in February 2027—had previously indicated he would not seek reappointment.
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Meanwhile, Dalal Street is cheering the news. Tata Group stocks are soaring across the board as investors react to the prospects of a massive value-unlocking IPO and the board's push for leadership continuity.
ALSO READ: RBI Rejects Tata Sons' Bid To Avoid Listing, Retains It As Upper Layer NBFC: Sources
Tata Chemicals—widely viewed by the street as a prime beneficiary of a Tata Sons IPO due to its significant cross-holdings in the parent company—led the pack, skyrocketing up to 10% in intraday trade.
The bullish sentiment quickly swept across other group companies. Tata Motors Passenger Vehicles (TMPV) revved up by 6%, while Tata Power jumped 3%. Tata Consultancy Services (TCS), the group's flagship cash cow, also saw strong buying interest, peaking up to 1.8% higher as markets cheered the board's backing of Chandrasekaran's extended leadership.
Despite the immediate roadblock posed by Noel Tata's veto, the market's reaction underscores Dalal Street's immense appetite for what could be India's largest-ever stock market debut, driven by the RBI's strict compliance deadline for upper-layer NBFCs.
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