Tata Sons has voluntarily surrendered its certificate of registration to the Reserve Bank of India (RBI) after repaying debt of over Rs 10 lakh. According to an Economic Times report, the company, which is saddled with a debt of Rs 20,000 crore, will remain an unlisted entity.
As a result, Tata Sons can continue to operate as a privately-owned company, without listing its shares on the stock exchange, as per RBI regulations.
repayment of Rs 20,300 crore represents a substantial reduction in Tata Sons' liabilities, now only Rs 363 crore in non-convertible debentures and preference shares. Additionally, Tata Sons State Bank of India (SBI) owes Rs 405 crore and has given an undertaking to the RBI to return its certificate of registration.
In September 2022, the RBI designated Tata Sons as a Non-Banking Financial Company – Upper Layer (NBFC-UL), under which such companies are required to go public within three years.
In September 2022, the Reserve Bank of India (RBI) classified Tata Sons, a core investment company that borrows funds from banks and markets to invest in its group companies, as an NBFC-Upper Layer (NBFC-UL).
RBI Regulations
As per RBI rules, an NBFC-UL must get listed within three years of this classification. However, having significantly reduced its promoter risk profile through debt repayment, Tata Sons is no longer obliged to list its stock and has offered to surrender its registration certificate to the RBI.
Tata Sons reports 57% rise in net profit A target of Rs 34,654 crore has been set for the financial year ending March 2024. During this period, the company's revenue grew by 25 percent to Rs 34,654 crore. Rs 43,893 crore Last year it was Rs 35,058 crore.
The company's total expenses saw a significant drop of 27 per cent to 2.5 per cent in FY24. Rs 2,776 crore It stood at Rs 3,794.70 crore in FY 2023. At the same time, the return on equity before exceptional items and tax stood at 38.15 per cent in FY 2024.