Tata Sons concludes crucial board meeting amid governance concerns
What's the story
The board of directors at Tata Sons, the holding company of the salt-to-software conglomerate, met today. The meeting was attended by several key figures including Noel Tata, the chairman of Tata Trusts and nominee director on the Tata Sons board. N Chandrasekaran, the chairman of Tata group, also attended but did not address media after the meeting.
Reappointment speculation
Board meeting held amid rising tensions within Tata group
As per reports, the board meeting didn't discuss the reappointment of Chandrasekaran, amid rising tensions within the Tata group. It is reported that Chandrasekaran and Noel had met over the weekend to discuss performance issues at group companies. The meeting comes as unlisted businesses of the Tata group recorded a loss of ₹10,905 crore in FY25. The figure is likely to go up to ₹29,000 crore.
Business worries
Noel's concerns include financial losses and potential IPO
Noel is reportedly worried about the losses at Tata Sons, especially from new ventures launched under Chandrasekaran's leadership, such as Tata Digital and electronics businesses. The financial woes of Air India, which was acquired from the government a few years ago, also concern him. Notably, he is also hesitant to take Tata Sons public through an IPO despite its classification among RBI's top-15 NBFCs mandated to list.