Tata Sons' board approved a public listing and granted Chairman Natarajan Chandrasekaran a five-year term extension despite opposition from founding-family patriarch Noel Tata. The move marks a significant setback for Noel, who has long fought to keep the holding company private. Tata Trusts, the controlling shareholder led by Noel, called the reappointment "illegal" and stated they had not agreed to a listing, setting the stage for a legal showdown. A public float would increase regulatory scrutiny and potentially dilute the Trusts' control, while offering minority shareholder Shapoorji Pallonji Group a path to monetize its stake and reduce debt.

At the meeting, Noel presented a SP Group proposal to monetize part of its stake for at least 250 billion rupees ($2.6 billion) via a share buyout over 18 months. Despite the governance turmoil, group stocks rallied: Tata Chemicals surged over 13%, Tata Motors Passenger Vehicles rose 6.3%, Tata Consultancy Services gained 3.4%, and Tata Investment Corp. jumped 7.6%. The developments come as India's NSE Nifty 50 extends a five-week losing streak amid foreign fund outflows.