Tata Sons, the holding entity of the Tata Group, has repaid over £2 bn of debt to remain an unlisted company as it plans to give up its certificate of registration to the Reserve Bank of India, reports said.
The strategic move will allow Tata Sons to remain as a closely-held company sidestepping the need to list its shares, which would have been required under RBI guidelines if the debt remained. In April this year, Tata Group had approached the RBI seeking a waiver in order to avoid listing its holding company and non-banking finance firm, Tata Sons.
In October 2021, the RBI had issued revised regulations under which large non-banking finance companies (NBFCs) were asked to list their shares on a stock exchange within three years. The salt-to-power conglomerate needed to thereby be listed by September 2025 at the latest in order to comply with this regulation.
The net profit of Tata Sons for the financial year ending March 2024 saw an increase of 57 per cent surge at £3.46 bn. Revenue also witnessed a 25 per cent rise at £4.38 bn from £3.50 bn in the previous year.
