Tata Sons IPO May Get Relief From RBI, Listing Could Be Delayed Till September 2025

Key Highlights:

- RBI may relax IPO deadline for holding companies like Tata Sons.

- Shapoorji Pallonji Group may struggle, as it planned to sell stake via IPO.

- No immediate impact on Tata listed firms, but holding structure transparency delayed.

Mumbai: As per a Bloomberg report, Tata Sons may not face immediate pressure to list its IPO. Earlier, the company was expected to go public by September 2025. But now, the Reserve Bank of India (RBI) may allow more time for the IPO.

Last year, Tata Sons requested to be removed from the list of Core Investment Companies (CIC). RBI is now reviewing its regulations on such companies.

Tata Sons is a Holding Company, Not Customer-Facing

Tata Sons is not a customer-facing financial company. It is the main holding company of the Tata Group. It owns controlling stakes in listed companies like Tata Consultancy Services (TCS), Tata Motors, Tata Steel, and Titan.

The company believes that listing may bring the risk of a takeover. But currently, Tata Trusts owns 66 percent of Tata Sons, and the board has powers to block any such takeover.

RBI May Change Rules for NBFCs

Tata Sons was earlier kept in the “Top-Tier NBFC” category, which meant more regulatory pressure, including mandatory listing.

However, RBI Governor Sanjay Malhotra has suggested that there could be separate rules for Type-I NBFCs like holding companies. RBI now seems open to easing rules for such companies, saying that “policies should change with time.”

Impact on Shapoorji Pallonji Group

This change could be a setback for the Shapoorji Pallonji (SP) Group. The group owns an 18.37 percent stake in Tata Sons. It was planning to sell its stake through the IPO to reduce its debt.

With the IPO now delayed, the SP Group has no option for quick liquidity. It has been under financial stress for the past few years, and selling the Tata stake was a key solution.

What It Means for Investors

There will be no direct effect on listed Tata Group companies like TCS or Tata Motors. But the long-awaited clarity in the Tata Group’s holding structure will now be further delayed.

An IPO would have given investors better understanding of the group’s control and the relationship between Tata Trusts and its listed companies. It also could have opened new investment opportunities at the holding company level.

Tata Sons may avoid the listing pressure for now, thanks to RBI’s changing approach. This helps the Tata Group maintain its decades-old structure. But for minority shareholders like the SP Group, it brings more uncertainty and financial challenges.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers should consult their financial advisors before making investment decisions.