Tata Trusts Propose Strategic Reorganisation of Tata Sons
Mumbai, Sept 28 (TNT): The Tata Trusts, which hold a 66 per cent stake in Tata Sons Private Limited (TSPL), have proposed a strategic reorganisation of the company aimed at ensuring that the reorganised entity is neither a non-banking financial company (NBFC) nor a core investment company (CIC).
The proposed reorganisation involves the merger of Tata Electronics Systems Solutions Private Limited (TESS) and Tata Consulting Engineers (TCE) with TSPL, according to the Tata Trusts.
The Trusts said the proposed structure would restore an operating model for TSPL, which historically had its own operating businesses and revenues in addition to functioning as the holding company for the Tata Group.
Tata Consultancy Services, for instance, was a business division of TSPL until it was demerged into a separate subsidiary in 2004.
Following the proposed merger, the amalgamated entity would have operating revenues of Rs 1,05,043 crore as of March 31, 2026, compared with income from financial assets of Rs 40,072 crore.
Operating revenues would account for 64.3 per cent of its total income, the Trusts said.
The resultant entity would not meet the principal business criteria applicable to an NBFC, while its net assets of Rs 2,00,158 crore, including Rs 1,77,120 crore invested in group companies, would also keep it outside the conditions applicable to a CIC, according to the proposal.
The proposed merger would be subject to the Reserve Bank of India’s regulatory requirements, including obtaining a prior no-objection certificate under the RBI (Non-Banking Financial Companies – Voluntary Amalgamation) Directions, 2025.
As TSPL would cease to be a CIC following the proposed reorganisation, it would also be required to surrender its certificate of registration, the Trusts said.
The Tata Trusts have written to the TSPL board seeking consideration and approval of the proposal and initiation of necessary steps, including approaching the RBI for the required no-objection certificate.
The Trusts said they would engage with the RBI, along with TSPL, on all aspects of the proposed reorganisation.
The proposal is also in line with resolutions passed unanimously by the boards of Sir Dorabji Tata Trust and Sir Ratan Tata Trust in July 2025 to retain TSPL as an unlisted private company.
The Tata Trusts said the proposed structure would preserve the Tata Group’s distinctive organisational framework while enabling TSPL to have operating businesses and revenues alongside its role as the group’s holding company.
TNT KM
