Tata Sons, the $410-billion holding company of the Tata Group, has voluntarily surrendered its certificate of registration to the Reserve Bank of India (RBI). This decision comes after the company repaid more than ₹20,000 crore in debt. By surrendering the registration, Tata Sons maintains its status as a closely held entity and avoids the need to list its shares on the stock exchange.
The repayment of ₹20,300 crore has significantly reduced Tata Sons’ liabilities, leaving only non-convertible debentures and preference shares totaling ₹363 crore. To address these remaining obligations, Tata Sons has deposited ₹405 crore with the State Bank of India (SBI) and provided an undertaking to the RBI.
In September 2022, the RBI had classified Tata Sons as a Non-Banking Financial Company – Upper Layer (NBFC-UL), which required the company to list within three years. However, with the substantial debt reduction, Tata Sons has lowered its promoter risk profile, making it exempt from this listing requirement.
For the financial year ending March 2024, Tata Sons reported a 57% increase in net profits, reaching ₹34,654 crore. Revenues also grew by 25% to ₹43,893 crore from ₹35,058 crore in the previous year.
