Tata Trusts chairman Noel Tata has proposed merger of two group companies with Tata Sons Private Limited (TSPL) to keep the holding company private and remove it from the ambit of Reserve Bank of India’s guidelines for upper layer non banking finance corporation.
The proposed restructuring entails merger of Tata Electronics Systems Solutions Private Limited and Tata Consulting Engineers with Tata Sons.
Tata submitted the proposal to Tata Sons chairman N Chandrasekaran on Monday evening. A copy was also forwarded to Reserve Bank of India for record.
“The proposed strategic reorganisation of business and operations of TSPL is not a new pathway. TSPL for almost 80 years out of its 100-year existence, always had operating businesses and operating revenue le which enabled it to fund it’s other new business ventures,” Tata Trusts said in a press release.
The amalgamated entity arising out of the the merger shall have as on March 31, 2026 operating revenue of ₹1.05 lakh crore far in excess of its income from financial assets (₹40,072 crore) constituting 64.3 per cent of total income of the amalgamated entity.
It will not meet the “principal business criteria” of an NBFC and will also not meet conditions applicable to core investment company (net assets aggregating ₹2,00,158 crore out of which investment in group companies shall be are ₹177,120 crore representing less than 90 per cent of aggregate net assets of the resultant entity).
Published on September 28, 2026
