Tata Trusts, which hold a 66 per cent stake in Tata Sons, have proposed merging two group companies into the holding firm to help it stay unlisted. The plan involves folding Tata Electronics Systems Solutions and Tata Consulting Engineers into Tata Sons Private Limited.

According to the Trusts, the merged entity would have posted operating revenue of Rs 1,05,043 crore as of March 31, 2026, against Rs 40,072 crore of income from financial assets. Operating revenue would form 64.3 per cent of total income.

The Trusts argue this would take Tata Sons outside the Reserve Bank’s definitions of a non-banking financial company and a core investment company. Net assets would stand at Rs 2,00,158 crore, with group-company investments below the 90 per cent CIC threshold.

The merger needs a prior no-objection certificate from the RBI. Tata Sons would then surrender its CIC registration. The Trusts say the move returns the company to an earlier model where it ran operating businesses alongside its holding role.

The proposal is contested inside the Trusts. Vice-chairmen Venu Srinivasan and Vijay Singh wrote to fellow trustees saying it was not discussed or approved by the board, Reuters reported on October 1.