Tata Sons, the principal holding company of the Tata Group, has dismissed a proposal for an IPO from shareholder Shapoorji Pallonji Group.
What Happened: According to a Business Standard report on Wednesday, Tata Sons is currently waiting for the Reserve Bank of India’s (RBI) approval to relinquish its registration as a non-banking finance company (NBFC) and proceed as an unregistered core investment company (CIC).
The SP Group, which holds an 18.5% stake in Tata Sons, had encouraged the company to contemplate an IPO during the annual shareholders’ meeting on Monday. The listing would have allowed the SP Group to liquidate a part of its stake and generate funds to fulfil its debt obligations.
See Also: Tata Motors To Partner With Online Used Car Marketplaces To Enhance Ev Resale And Exchange Value
However, Tata Sons cleared its entire debt of ₹21,813 crore in the fiscal year ending March 2024 and petitioned the RBI to remove its classification as an NBFC upper layer. This action would exempt it from an RBI directive that necessitates all companies classified as NBFC upper-layer firms to be listed by September 2025.
The company, which recorded a 25% surge in total revenue to ₹43,893 crore and a profit before exceptional items and taxes of ₹41,116.51 crore in FY24, has petitioned the RBI for the voluntary surrender of its registration as a CIC. The RBI’s decision is anticipated shortly.
Read Next: Who Has Bought Over 43 Lakh Trent Shares Worth Over ₹3,200 Cr In The Past Month?
Engineered by Benzinga Neuro, Edited by Ananthu CU
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.