Mumbai: A challenge has been thrown to Tata Sons’ proposed Initial Public Offer (IPO) plans, with the company’s vice-chairmen Venu Srinivasan and Vijay Singh questioning the viability of chairman Noel Tata’s merger proposal.

The two veteran Tata Group leaders have reportedly expressed concerns over the impact of the proposed mergers on shareholders and the potential disruption to operations.

Tata Trusts, which includes the Tata Sons subsidiary Tata Chemicals, has been at the center of a heated debate over its future strategy.

According to sources close to the matter, Srinivasan and Singh have suggested exploring alternative options for the company’s growth, including a possible restructure or a change in ownership.

Tata Sons, however, is committed to pursuing the merger plan, which aims to create a more efficient and streamlined business model.

The proposed mergers involve the integration of Tata Chemicals with another Tata Group subsidiary, Tata Steel. The deal is expected to create a new entity with a combined market value of over $40 billion.

Despite the challenges, Tata Sons’ board of directors has given its backing to the proposal, citing the potential benefits of increased efficiency and reduced costs.

Sources suggest that Srinivasan and Singh’s concerns are largely driven by concerns over the impact on employees and customers. The proposed mergers could lead to job losses and disruptions to supply chains.

However, Tata Sons has insisted that the merger plan will create new opportunities for growth and development.

‘We believe that this proposal has the potential to drive significant value creation for our stakeholders,’ said a spokesperson for Tata Sons. ‘We are committed to exploring all options to ensure the long-term success of our business.’

Meanwhile, Srinivasan and Singh have remained tight-lipped on their intentions, but sources close to them suggest that they are determined to push the matter further.

‘They want to see more clarity on how this proposal will benefit shareholders,’ said a source. ‘If there’s no clear answer, they may consider alternative options.’

The outcome of Srinivasan and Singh’s challenge remains to be seen. However, one thing is certain: the fate of Tata Sons’ proposed IPO plans hangs precariously in the balance.

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