Tata Sons has reversed course and approved a fresh five-year term for N Chandrasekaran, as uncertainty continues over its possible IPO and board tensions.

N Chandrasekaran | PTI

Mumbai: board has approved a fresh five-year term for N Chandrasekaran as executive chairman, reversing his earlier decision not to seek reappointment after his current tenure ends in February 2027.

The decision was taken at the holding company’s board meeting in Mumbai on September 17, according to a Reuters report citing a person familiar with the development. Tata Sons has not yet issued an official statement explaining the decision.

Major Reversal Within Weeks

had announced in August that he would not seek a third term after failing to receive unanimous support from the Tata Sons board.

His decision had opened a difficult succession question for India’s largest business group, particularly as several major projects remain under execution.

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The latest approval signals that the board has chosen leadership continuity at a time when Tata Sons faces significant regulatory and strategic challenges.

Opposition May Continue

However, the reappointment may not end tensions within the group.

A separate Reuters report indicated that Tata Trusts Chairman Noel Tata could challenge Chandrasekaran’s continuation. Tata Trusts collectively owns around 66% of Tata Sons and exercises considerable influence over the holding company.

Chandrasekaran and Noel Tata have reportedly differed over the proposed listing of Tata Sons and the allocation of capital across the conglomerate’s businesses.

All Eyes On Tata Sons IPO

The decision comes days after the Reserve Bank of India rejected Tata Sons’ request to surrender its registration as a core investment company.

The RBI ruling keeps Tata Sons within the upper-layer NBFC framework and brings the requirement for a stock market listing back into focus. Reuters

Chandrasekaran’s extension could provide management stability if Tata Sons begins preparations for a potential IPO. However, the board’s final position on the listing and any possible legal response to the RBI decision remain unclear.

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