Tata Sons is said to be preparing to change its classification as an "upper layer NBFC" and core investment company in order to avoid going public by 2025.

The company has made a commitment not to access public funds, which could limit its ability to provide corporate guarantees for its new ventures.

The Tata Group has significant investment plans, including the establishment of two semiconductor units with an investment exceeding Rs 1 lakh crore.

Earlier this year, Tata Sons reduced its public debt by Rs 20,000 crore through the repayment of debentures and bank loans, and has sought approval from the Reserve Bank of India for its change in classification.

It is suggested that this move to avoid public funding could have an impact on the growth and development of several of its new businesses, as public funds include various financial instruments such as deposits, bank finance, non-convertible debentures, and commercial papers.