To remain an unlisted entity, Tata Sons, the $410-billion holding company of the Tata Group, has voluntarily surrendered its certificate of registration to the Reserve Bank of India (RBI) after repaying over Rs. 20,000 crore in debt. This decision allows Tata Sons to maintain its status as a closely held company, sidestepping the need to list its shares on the stock exchange, which would have been required under RBI regulations had the debt remained. 

The RBI classified Tata Sons, a core investment company that borrows funds from banks and markets to invest in its group companies, as a Non-Banking Financial Company – Upper Layer (NBFC-UL) in September 2022. Under this classification, companies are required to list within three years. However, with the substantial debt repayment, Tata Sons has significantly lowered its promoter risk profile, thereby exempting it from the listing requirement and allowing it to relinquish its NBFC registration.

The financial year ending March 2024 saw Tata Sons achieve a 57 percent surge in net profits at Rs. 34,654 crore. Revenues also witnessed a 25 percent increase to Rs. 43,893 crore from Rs. 35,058 crore in the previous year. As of March 31, 2023, the company had a net debt of Rs. 20,642 crore. By March 31, 2024, this had been converted into a net cash position of Rs. 2,670 crore.

Tata Sons declared its highest-ever dividend of Rs. 35,000 per share for its shareholders. The Dorabji Tata Trust, which holds a 28 percent stake, and the Ratan Tata Trust, with a 24 percent stake, are the largest beneficiaries. Other shareholders include Sterling Investment, Cyrus Investments, Tata Motors, Tata Chemicals, and Tata Power.

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