Bombay: The biggest news of this time has come from Tata Group, one of the largest empires of the Indian corporate world. In an important board meeting held at Bombay House, the Board of Directors of Tata Sons appointed N. Great confidence has again been expressed in the name of Chandrasekaran. The board has given green signal to the proposal to appoint him again as the executive chairman of Tata Sons for the next 5 years. Chandrasekaran has been heading Tata Sons since 2017 and now the way has been cleared for his leadership to continue for the next five years.
Before this decision, Chandrasekaran had told the board in August that he did not want to be re-appointed to the post of chairman. After this, there were reports of the start of search for a new chairman in Tata Sons. However, now this process may stop after the board’s decision. Chandrasekaran was appointed chairman of Tata Sons for the second time in 2022 for five years. He came to this post in 2017 after Ratan Tata. Now his leadership of Tata Group will continue with his third term.
Equation changed after RBI decision
Regulatory changes related to Tata Sons are also considered important behind the re-appointment of Chandrasekaran. The Reserve Bank of India listed Tata Sons as an ‘upper layer’ NBFC in September 2022. Under this, the company had to be listed in the stock market within the stipulated time. Tata Sons had applied to RBI to withdraw its NBFC registration to get out of this rule. But on September 11, RBI rejected this application. Due to this, the issue of possible IPO and listing of Tata Sons has again come into discussion.
According to sources, some board members believe that if Tata Sons’ IPO comes, then no change in the company’s leadership could be a sign of confidence for investors. If Tata Sons is listed, it could be one of the biggest IPOs in India. Tata Sons has stake in many big companies of Tata Group including Tata Motors, Tata Steel, TCS, Indian Hotels. Therefore, the size of Tata Sons’ IPO is also expected to be quite big.
Voting took place in the board
According to sources, Tata Trusts Chairman Noel Tata voted against Chandrasekaran’s reappointment, but the motion was passed with majority. Tata Trusts and Tata Sons had no immediate official comment on the outcome of the board meeting.