Tata Trusts propose merger to keep Tata Sons unlisted

Tata Trusts, which hold 66% of Tata Sons, have proposed merging two operating companies into the group’s holding company, saying the restructuring could change its regulatory classification and allow it to remain privately held and unlisted. The proposal has been sent to the Tata Sons board for consideration and is not approved. The plan would combine Tata Electronics Systems Solutions and Tata Consulting Engineers with Tata Sons. The Trusts have asked the board to consider the merger and take steps to seek a prior no-objection certificate from the Reserve Bank of India (RBI), as required under the central bank’s 2025 voluntary amalgamation directions. The Trusts argue that adding the two operating businesses would mean Tata Sons no longer meets the criteria for a non-banking financial company (NBFC) or a core investment company (CIC). They say the reorganised company could then retain its unlisted status. The regulatory outcome, however, has not been determined: the board must consider the proposal, and the merger would require RBI approval before it could proceed.