While there is no official statement from the regulator yet, the report suggests that the Tatas are reluctant to allow Tata Sons to get listed.
Months after Tata Sons sought exemption from being listed on the stock exchanges, it has emerged that the Tata Group holding company may eventually have to debut on D-Street. This comes after the Reserve Bank of India (RBI) rejected the company’s request for exemption from mandatory listing.
RBI Denies Tata Sons’ Exemption Request
According to reports by ET NOW, the RBI has turned down Tata Sons’ appeal to be exempted from the listing requirement for upper layer Non-Banking Financial Companies (NBFCs). The central bank has clearly communicated that no special dispensation will be granted. As per RBI regulations, Tata Sons is now required to be listed on stock exchanges by September 2025.
While there is no official statement from the regulator yet, the same report suggests that the Tatas are reluctant to allow Tata Sons to get listed.
Who Owns Tata Sons?
Tata Sons is the holding company for the Tata Group and has multiple cross-holdings within the conglomerate. Nearly 65.2% of Tata Sons is owned by six trusts, including Sir Dorabji Tata Trust – 28%, Sir Ratan Tata Trust – 23.6%, JRD Tata Trust – 4%, Tata Social Welfare Trust – 3.7%, Tata Education Trust – 3.7%, RD Tata Trust – 2.2%
In addition to the trusts, the Mistry family holds a significant 18.4% stake in Tata Sons. Seven other listed Tata Group companies also have stakes in Tata Sons, including, Tata Steel – 3.1%, Tata Motors – 3.1%, Tata Chemicals – 2.5%, Tata Power – 1.7%, Indian Hotels – 1.1%, Tata Consumer – 0.4%, Tata Investment Corp – 0.1%
Together, other Tata companies own around 4.4% of Tata Sons.
Tata Sons’ Holdings in Tata Group Companies
Tata Sons holds shares in around 14 listed Tata Group companies, with its stakes ranging between 14% to 72%. The company’s largest holding is in Tata Consultancy Services (TCS), one of India’s largest companies by market cap. Other significant holdings include, Tata Investment Corp – 68.51%, Tata Elxsi – 42.22%
In addition to listed entities, Tata Sons also has stakes in several unlisted businesses and joint ventures, including Air India, Vistara, Tata Advanced Systems, Tata Digital, Tata Capital, and Tata Electronics, among others.
Tata Sons is financially robust, with zero debt on its balance sheet and cash reserves (including mutual fund investments) of ₹3,042 crore.
Valuation of Tata Sons
If we assess Tata Sons based on its holdings in listed companies, its stake is valued at approximately Rs 16,28,316 crore. However, since Tata Sons is a holding company, a holding company discount is typically applied. Based on various discount rates, the company’s valuation would be, at 40% discount: ₹9,76,990 crore, At 50% discount: ₹8,14,158 crore, At 60% discount: ₹6,51,326 crore
Tata Sons Financial Performance
Tata Sons’ asset size has increased from ₹1,35,676 crore in FY23 to ₹1,49,451 crore in FY24. Its revenue grew from ₹35,059 crore in FY23 to ₹43,893 crore in FY24. Additionally, the company managed to reduce its total expenses from ₹3,795 crore in FY23 to ₹2,777 crore in FY24.