Tata Trusts, which hold a 66 per cent stake in Tata Sons Private Limited (TSPL), have proposed a strategic reorganisation of the company through the merger of Tata Electronics Systems Solutions Private Limited (TESS) and Tata Consulting Engineers (TCE) with TSPL.
According to the proposal, the reorganisation would result in the combined entity no longer being classified as a Non-Banking Financial Company (NBFC) or a Core Investment Company (CIC), while retaining the Tata Group’s existing operating structure.
As of March 31, 2026, the proposed amalgamated entity would have operating revenues of Rs 1,05,043crore, compared with Rs 40,072 crore in income from financial assets. Operating revenues would account for 64.3 per cent of total income. Its net assets would stand at Rs 2,00,158 crore, with investments in group companies at Rs 1,77,120 crore, or less than 90 per cent of aggregate net assets.
The merger would require prior no-objection from the Reserve Bank of India under the RBI’s 2025 directions on voluntary amalgamation of NBFCs. TSPL would also surrender its CIC registration after the restructuring.
Tata Trusts have asked the TSPL board to consider the proposal and initiate the necessary regulatory process. The Trusts said the move would preserve TSPL’s status as an unlisted private company and the Tata Group’s long-standing organisational structure.
