Who is the majority shareholder in Tata Group and Tata Sons?. Surprisingly the answer is neither Ratan Tata, nor his half-brother Noel Tata, or any other person from the Tata family.
The Tata Group recently lost its Chairman Emeritus, Ratan Tata, who passed away at the age of 86 at a Mumbai hospital on October 9 (Wednesday). The next day, Ratan Tata, perhaps the most beloved billionaire in India, was cremated will full state honors at an electric crematorium in Worli, Mumbai.
Anyone who has read anything about business in the last three decades knows that Ratan Tata transformed the Tata Group from a domestic business house to a global conglomerate, which is today valued at mind-boggling $403 billion (more than Rs 33.7 trillion), having over 30 companies spread across more than 100 countries.
But who is the majority shareholder in Tata Group and Tata Sons?. Surprisingly the answer is neither Ratan Tata, nor his half-brother Noel Tata, or any other person from the Tata family. As a matter of fact, the majority of the shares are held by Sir Dorabji Trust and Sir Ratan Tata Trust, owning 27.98% and 23.56% of Tata Sons shares, respectively.
Tata Sons majority shareholders
Akin to Ratan Tata himself, the Tata Group is renowned for its philanthropic ventures, and as a results around 66 percent of the group’s stakes are held collectively by Tata Trusts which are engaged in various charitable and philanthropic activities. As of March 31, 2024, Sir Dorabji Trust and Sir Ratan Tata Trust are the largest shareholders, owning 27.98% and 23.56% of Tata Sons. The JRD Tata Trust owns 4.01% while Tata Education Trust and Tata Social Welfare Trust own 3.73%. MK Tata Trust owns 0.6% and Sarvajanik Seva Trust owns 0.1%
Traditionally, the same person used to head Tata Sons and Tata Trusts as Chairman of both entities, as was the case when Ratan Tata was the Chairman. But this was changed in 2022 when it was decided that the two roles should be given to two different individuals to promote better governance and a clearer oversight.
After Ratan Tata’s demise, his half-brother Noel Tata has been appointed as the chairman of Tata Trusts, the majority shareholders in the $403 billion Tata Group.