Tata Trusts have proposed a rejig of Tata Sons. The aim is to keep the holding company unlisted.

Tata Trusts own around 66% of Tata Sons. They made the proposal on September 28.

The plan merges two companies into Tata Sons Pvt Ltd. These are Tata Electronics Systems Solutions and Tata Consulting Engineers.

TESS makes iPhones in Karnataka. It was acquired from Wistron in 2024.

The merger would take Tata Sons outside the RBI’s NBFC and CIC classification. This would avoid a mandatory listing.

The combined firm would have operating revenue of Rs 105,043 crore. Revenue from financial assets would be Rs 40,072 crore. Operating revenue would be 64.3% of the total.

Net assets would be Rs 200,158 crore. Group investments of Rs 177,120 crore stay under the 90% threshold.

The proposal has gone to chairman N Chandrasekaran and the RBI. It needs Tata Sons board approval and the RBI’s prior no-objection.

It follows the RBI’s September 11 rejection. The RBI had rejected Tata Sons’ application to surrender its CIC registration.