Tata Sons rules out IPO plans despite push from shareholder SP group

Holding co prepays Rs 21,813 crore debt in FY 2024 to declassify itself as NBFC upper layer

Tata Sons, the holding company of the Tata group, has ruled out any plans to launch an initial public offering (IPO) despite a plea by the SP group, one of its shareholders, to list its shares.

Tata Sons is expecting clearance for its application to the Reserve Bank of India (RBI) to surrender its registration as a non-banking finance company (NBFC) and continue as an unregistered core investment company (CIC), said a source close to the development on Tuesday.

As per media reports, the SP group has asked Tata Sons to consider an IPO for the company. The SP group holds an 18.5 per cent stake in Tata Sons and made the plea at the Tata Sons annual shareholders' meeting held on Monday. A listing would have helped the SP group monetise part of its stake and raise funds to meet its debt obligations.

 

A Tata group spokesperson declined to comment. The SP group did not comment.

As per an earlier RBI circular, all companies classified as NBFC upper layer have to be listed by September 2025. This would have made it mandatory for Tata Sons to list itself. But in the financial year ending March 2024, TSPL paid off its entire debt of Rs 21,813 crore and applied to declassify itself as an NBFC upper layer with the RBI.

As per the TSPL annual report for FY24, Tata Sons reported a growth of 25 per cent in its total revenue to Rs 43,893 crore and a profit before exceptional items and taxes of Rs 41,116.51 crore.

The capital structure of the company strengthened as its net debt reduced to negative Rs 2,679.19 crore, with its cash balance in excess of debt on March 31, 2024. The holding firm reported a profit after tax of Rs 34,653.98 crore, a growth of 57 per cent over the previous year.

The company, which is registered as a Core Investment Company with the Reserve Bank of India, has applied to the RBI for the voluntary surrender of its registration as a CIC. The RBI response is expected soon.