Tata Trusts, which holds a 66% stake in Tata Sons, proposed a strategic reorganization to merge two operating units into the holding company to avoid mandatory public listing requirements, according to a press release on Monday.

Under the proposal, Tata Electronics Systems Solutions and Tata Consulting Engineers would be merged into Tata Sons. Tata Trusts said the reorganization is designed to ensure the resulting entity would no longer qualify as either a non-banking financial company (NBFC) or a core investment company (CIC) under regulatory terms.

The shift would restore Tata Sons to a direct operating model, similar to its structure before Tata Consultancy Services (NSE:TCS, BOM:532540) was demerged into a separate subsidiary in 2004, with Tata Sons operating businesses and revenues alongside its role as the Tata Group's holding company.