Tata Sons Repays ₹20,000 Crore in Debt to Maintain its Private Status

Tata Sons voluntarily surrendered its certificate of registration to the RBI after repaying more than ₹20,000 crore in debt, aiming to remain an unlisted entity.

Article: Tata Sons voluntarily surrendered its registration certificate to the Reserve Bank of India (RBI) after repaying over ₹20,000 crore in debt. This move allows Tata Sons to maintain its status as a closely held company and avoid listing its shares on the stock exchange, a requirement under RBI regulations.

The repayment totals Rs 20,300 crore, significantly reducing Tata Sons' liabilities, with the exception of Rs 363 crore in non-convertible debentures and preference shares. As part of surrendering its registration certificate, Tata Sons deposited Rs 405 crore with the State Bank of India (SBI) and issued an undertaking to the RBI.

In September 2022, the RBI designated Tata Sons as a Non-Banking Financial Company – Upper Layer (NBFC-UL), which mandates listing within three years. For the financial year ending March 2024, Tata Sons reported a 57% increase in net profits, reaching Rs 34,654 crore. Revenues grew by 25%, rising to Rs 43,893 crore from Rs 35,058 crore the previous year.

The company's total expenses decreased significantly by 27% in FY24, falling to Rs 2,776 crore from Rs 3,794.70 crore in FY23. Additionally, the return on equity, before exceptional items and tax, was 38.15% for FY24.