Tata Trusts, which hold 66% of Tata Sons Private Limited, declared on 28 September 2024 that it would combine Tata Electronics Systems Solutions and Tata Consulting Engineers with TSPL to keep the holding company out of RBI’s non‑banking financial company (NBFC) and core investment company (CIC) categories that trigger a stock‑market listing.
The proposal echoes a 2004 structure when Tata Consultancy Services operated as a division of TSPL before it was spun off; the Trusts argue the merger will restore TSPL’s operating model and revenue base.
Board members have split over the plan, sparking a long‑standing dispute between the Trusts and Tata Sons management about the group’s future.
The Trusts will seek a no‑objection certificate from the RBI and the board must approve the merger by 15 October 2024, after which the company will file the necessary documents with the Registrar of Companies.
If approved, TSPL will be reclassified as a non‑banking, non‑financial company, sidestepping the listing requirement, and the move is expected to shift investor sentiment as Tata Group employees watch the outcome.