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What’s Happening at Tata? RBI Shuts Exit Route, IPO Pressure Mounts on Noel Tata
The central bank said the listing could unlock value for minority shareholders and pressed Tata Sons to ensure full compliance immediately.
The RBI rejected Tata Sons Pvt Ltd's request to deregister as a non-bank lender, directing the company to ensure immediate compliance with NBFC-upper layer guidelines and initiate a listing process.
In a letter to Tata Sons chief financial officer Saurabh Agarwal, the RBI denied the company's March 28, 2024, application to operate as an unregistered CIC, citing unmet regulatory criteria.
Seven Tata Group companies collectively own about 11.6 per cent to 13 per cent of Tata Sons, while the Shapoorji Pallonji Group holds 18.37 per cent through Cyrus Investments and Sterling Investment Corporation.
Listing enables the debt-burdened Shapoorji Pallonji Group to monetize holdings in the secondary market or through an offer for sale during the Tata Sons listing process.
The Tata Sons Board will meet on September 17 to address the directive, as listed Tata Group companies prepare for market focus on Tuesday following Monday's Ganesh Chaturthi closure.