Tata Group seeks RBI waiver
from listing NBFC
Tata Group has sought a formal waiver from the central bank to
avoid listing Tata Sons, its holding company and non-banking finance firm, on
stock exchanges, Bloomberg News reported on Friday, citing people familiar with
the matter.
In seeking the waiver, Tata told the central bank it has used the
proceeds from selling $1.1 billion worth of shares in Tata Consultancy Services
last month to pay off loans to foreign and local lenders, the news agency
reported.
Tata Sons' borrowings stood at ₹202.74 billion ($2.43
billion) as of March 31, 2023. If it is able to lower its debt to below 1
billion rupees, it could cease to be classified as an upper-layer NBFC by the
RBI and avoid listing.
Tata Group and the RBI did not immediately reply to Reuters'
requests for comment.
Tata Sons must be listed on or before September 2025 to adhere to
an RBI regulation that large non-banking finance companies (NBFCs) list their
shares within three years.
www.thehindubusinessline.com
dt. 20.04.2024