Noel Tata flags concerns over Tata Sons listing plan

Mumbai: TataTrusts Chairman Noel Tata has urged the Tata Sons board to review a restructuring proposal aimed at avoiding a stock market listing of the holding company.

Noel Tata said he remained hopeful that the Reserve Bank of India would reconsider its decision to classify Tata Sons as an upper-layer non-banking financial company (NBFC).

According to him, listing Tata Sons would fundamentally change the way the Tata group has operated for decades and could create a conflict between investor expectations for profits and the philanthropic objectives of Tata Trusts.

Tata Trusts, which owns 66 per cent of Tata Sons, has proposed merging Tata Electronics Systems Solutions and Tata Consulting Engineers with Tata Sons. The restructuring would give Tata Sons its own operations and revenue and could allow it to avoid classification as an NBFC or core investment company. Tata Sons was placed on the RBI's upper-layer NBFC list in September 2022 and was given three years to list. The company subsequently cleared its debt and applied in 2024 to surrender its core investment company status and remain private.

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The Hans India