The board of directors of Tata Sons, the parent company of Tata Group, will meet on Tuesday in which the performance of the loss-making companies of the group is likely to be discussed. Sources gave this information on Monday. Sources said that in the meeting, especially group companies facing losses can give a presentation on their business status and future strategy. However, sources clarified that the re-appointment of N Chandrasekaran as chairman of Tata Sons is not likely to be discussed in this meeting. This meeting is taking place at a time when there are reports of differences at the top level within the group.
Estimate of loss increased
According to sources, Tata Trusts Chairman Noel Tata and Chandrasekaran had discussed the performance of the group companies over the weekend. There is a report that in the financial year 2024-25, the business of the unlisted companies of the group had suffered a loss of Rs 10,905 crore. It is expected to increase to Rs 29,000 crore. Tata Trusts holds two-thirds stake in the Tata Group. In recent months, the group has been marked by differences at the top level, attempts to remove some members and uncertainty over the tenure of the chairman. According to reports, Noel Tata is worried about the performance of Tata Digital, electronics business and loss-making Air India. Most of these businesses started when Chandrasekaran was the head of Tata Sons.
Brainstorming on IPO also
Apart from this, there is also difference of opinion regarding the initial public offering (IPO) of Noel Tata’s Tata Sons. The Reserve Bank of India has asked Tata Sons to be listed in the market, describing it as a huge non-banking financial company. An e-mail sent to a representative of Tata Trusts on the current developments in the Tata Group had not received any response till the time of going to press. Meanwhile, proxy advisory firm InGovern has said that listing of a company of huge size like Tata Sons is necessary so that transparency and corporate governance can be strengthened.
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