Tata Sons IPO: Tata Sons the holding company of Indias largest conglomerate Tata Group may be forced to become a publicly traded company by September 2025 after Reserve Bank of India (RBI) identified the firm as an Upper Layer Non-Banking Financial Company (NBFC-UL). In its latest list of NBFCs classified under the Upper Layer (NBFC-UL) category on January 16 the RBI named Tata Sons along with 15 top firms including Tata Capital LIC Housing Finance Bajaj Finance and Aditya Birla Finance among others. The Tata Group the countrys largest business house is trying to prevent its holding company from being listed on stock exchanges in India. The group has filed an application for de-registration of Tata Sons as an NBFC which is being reviewed by the RBI and if approved would exempt the group from being mandatory listing. RBI stated the classification of Tata Sons as an NBFC-UL is without prejudice to the outcome of its de-registration application however the central bank clarified that under the rules once an NBFC is classified as NBFC-UL it will have to follow the increased regulatory requirements for at least five years even if it exits the list in subsequent years. Indias largest IPO According to reports Tata Sons is cutting down its debt to exit the classification of NBFC-Core Investment Company and avoid being listed as an upper layer NBFC. RBI rules mandate that Tata Sons would be mandatorily required to list on stock exchanges by September 2025 if the company continues to remain an upper layer NBFC. As per market analysts Tata Sons will need to sell at least Rs 50000 crore of equity to reduce its 5% stake given the valuation of its holdings and its listing will be Indias largest Initial Public Offering (IPO) if it happens. Notably Tata Sons substantially reduced its debt in 2024 by selling off TCS shares. The Tata Group The news comes months after the salt-to-software conglomerate lost its Chairman Emeritus Ratan Tata who died due to age-related issues at Mumbais Breach Candy Hospital on October 9 2024. He was 86. Following Ratan Tatas demise his half-brother Noel Tata 67 was picked as the new chairman of Tata Trusts an umbrella group of charities which holds 66% stake in Tata Sons -- the holding company of Tata Group. The Tata Group established by its founder Jamshedji Nasirwanji Tata in 1868 when he bought a bankrupt oil mill for Rs 21000 a massive amount at the time and turned it into a cotton factory has today grown into a global juggernaut with over 100 companies spread in more than 100 countries boasting a market cap of $403 billion (roughly Rs 33.7 trillion).