Tata Sons board gives N Chandrasekaran five-year extension, clears IPO plan

The Tata Sons board has approved a plan to take the holding company public and cleared a five-year extension for chairman N Chandrasekaran, according to a report by CNBC TV18.

The decisions were taken at a board meeting on Thursday that lasted around three hours, as tensions within the Tata group continue over the company’s proposed listing and leadership.

The board’s decision to proceed with a public listing comes days after the Reserve Bank of India (RBI) rejected Tata Sons’ request to surrender its core investment company registration and directed it to proceed with an immediate listing.

Tata Sons was classified by the RBI as an upper-layer non-banking financial company in September 2022. The classification required the company to list within three years. Tata Sons subsequently repaid its debt and sought to retain its privately held status by surrendering its registration, but the RBI rejected that request on September 11.

The listing has been a major point of contention among Tata Sons’ shareholders. Tata Trusts, which holds about 66 per cent of Tata Sons, has opposed an initial public offering (IPO). The Shapoorji Pallonji Group, which owns around 18.4 per cent, has favoured a listing, arguing that it could unlock value and improve liquidity.

The board has also approved a five-year extension for Chandrasekaran, who has served as Tata Sons chairman since February 2017. He was unanimously reappointed for a second five-year term in 2022, with his tenure originally scheduled to end on February 20, 2027.

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The leadership issue had become closely linked with the broader disagreement over the group’s direction. Tata Trusts backed Chandrasekaran for a third term in 2025, but the proposal stalled in February 2026 after Trusts chairman Noel Tata raised concerns over businesses including Air India and Tata Digital.

Chandrasekaran subsequently said in August that he would not seek another term. The latest board decision marks a significant change in both the leadership and ownership trajectory of Tata Sons, potentially setting the stage for one of India’s most closely watched corporate listings.