New Delhi [India], September 28 (ANI): Tata Trusts, which hold a 66 per cent stake in Tata Sons Private Limited (TSPL), have proposed a strategic reorganisation of the Tata Group holding company that would result in TSPL ceasing to be classified as a Non-Banking Financial Company (NBFC) or a Core Investment Company (CIC), according to a press release by Tata Trusts.

The proposed reorganisation involves the merger of Tata Electronics Systems Solutions Private Limited (TESS) and Tata Consulting Engineers (TCE) with TSPL. The Tata Trusts said the move would restore an operating model for TSPL, under which it would have its own operations and revenues alongside its role as a holding company for the Tata Group.

Following the proposed merger, the amalgamated entity would have operating revenues of Rs 1,05,043 crore as of March 31, 2026, compared with income from financial assets of Rs 40,072 crore. Operating revenues would account for 64.3 per cent of total income, the release said.

According to the release, the resultant entity would also not meet the principal business criteria for classification as an NBFC, while its investments in group companies would account for less than 90 per cent of aggregate net assets, meaning it would not meet the conditions applicable to a CIC.

The proposed amalgamation will require compliance with the Reserve Bank of India's Non-Banking Financial Companies - Voluntary Amalgamation Directions, 2025, including obtaining a prior no-objection certificate from the RBI.

As TSPL would cease to be a CIC following the reorganisation, it would also be required to surrender its certificate of registration, the Tata Trusts said.

The Tata Trusts have written to the TSPL Board to consider and approve the proposal and take necessary steps, including approaching the RBI for the required no-objection certificate. The Trusts and TSPL will engage with the central bank on the proposed reorganisation.

The Trusts said the proposed structure is intended to be regulatory-compliant while preserving the Tata Group's more than 100-year-old organisational structure. The proposal is also aligned with resolutions passed by the Sir Dorabji Tata Trust and Sir Ratan Tata Trust in July 2025 to make efforts to retain TSPL as an unlisted private company. (ANI)