This company repays Rs 20000 crore debt for... and it has a Ratan Tata connection

Tata Sons has voluntarily surrendered its registration certificate to the Reserve Bank of India (RBI) after repaying over Rs 20,000 crore in debt, allowing it to remain an unlisted entity, according to reports. The Economic Times reported that by doing so, Tata Sons can maintain its status as a closely held company without needing to list its shares on the stock exchange, a requirement under RBI regulations.

The repayment, totaling Rs 20,300 crore, has significantly reduced Tata Sons' liabilities, leaving only non-convertible debentures and preference shares worth Rs 363 crore outstanding. As part of the process to surrender its registration, Tata Sons allocated ₹405 crore in deposits with the State Bank of India (SBI) and provided an undertaking to the RBI.

In September 2022, the RBI categorised Tata Sons as a Non-Banking Financial Company – Upper Layer (NBFC-UL), which mandates such companies to list on the stock exchange within three years.

Tata Sons reported a 57 percent increase in net profits, reaching Rs 34,654 crore for the financial year ending March 2024. During the same period, the company’s revenues rose by 25 percent to Rs 43,893 crore, up from Rs 35,058 crore in the previous year.

The company also saw a substantial decrease in total expenses, which dropped by 27 percent to Rs 2,776 crore in FY24 from Rs 3,794.70 crore in FY23. Additionally, Tata Sons achieved a return on equity, before exceptional items and tax, of 38.15 percent for FY24.