RBI Governor Sanjay Malhotra's Cryptic Hint That Matters To Tata Sons

As part of his monetary policy announcement on June 5, Friday, RBI Governor Sanjay Malhotra said India's apex bank is working on a fresh list of upper-layer non-banking financial companies (NBFCs).

“Upper layer NBFC list is out there, it continues until we update it. Will update upper-layer NBFC list shortly,” said Malhotra, while addressing a press conference today.

The $180 billion conglomerate had applied for de-registration as an upper-layer NBFC in 2024, however, the application still remains with the central bank.

This comes after Tata trustees,Vijay Singh, and Venu Srinivasan, have supported the listing of Tata Sons in media interactions, while Noel Tata reportedly remained opposing to the public listing.

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Among the six Tata trustees, Venu Srinivasan and Vijay Singh have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally, according to one report

Meanwhile, N Chandrasekharan, the present Chairman of the Mumbai-headquartered group hasn't taken a public position on Tata Sons IPO.

Earlier this month, Shapoorji Mistry of SP Group, which holds an over 18% stake in Tata Sons, issued a public statement urging the RBI to ensure Tata Sons get listed in the Indian stock market exchanges.

This came in the backdrop of SP Group facing a liquidity crunch and pinning expectations to such proceeds to repay its debt.

Notably, Tata Sons had repaid a debt of over Rs 20,000 crore after its board passed a resolution against listing.