Tata Sons, the Tata Group's parent company, has returned around Rs 20,000 crore in debt to remain private. The business cleared Rs 20,300 crore in borrowings to avoid being obliged to list its shares, which is a necessity for some major financial institutions under RBI guidelines.
In 2022, the RBI designated Tata Sons as an NBFC-Upper Layer (NBFC-UL), requiring it to go public within three years.
However, by repaying virtually all of its debt, Tata Sons is no longer required to follow this requirement and has requested that its registration as an NBFC be canceled.
Tata Sons also gave out a record dividend of Rs 35,000 per share to its shareholders.
The biggest beneficiaries are the Dorabji Tata Trust (28% interest) and the Ratan Tata Trust (24% stake).
Tata Sons received Rs 24,000 crore in dividends from its group firms, including Rs 19,000 crore from Tata Consultancy Services (TCS) and additional contributions from Tata Motors and Tata Steel.
Tata Sons did well financially in FY24, increasing net profits by 57% to Rs 34,654 crore and revenues by 25% to Rs 43,893 crore.
By March 2024, the company's net cash position will be Rs 2,670 crore, up from Rs 20,642 crore in March 2023. This recovery was aided by the sale of TCS shares, which raised more than Rs 21,000 crore this year.
Tata Sons also decreased its costs by 27% in FY24, while the value of its assets increased by 35.7% to Rs 15.21 lakh crore at the conclusion of the fiscal year. The company continues to invest in its companies to drive development and improve its finances, cementing its status as a private corporation.
