Trusts pitches SP group's ₹25K cr monetisation plan for its Tata Sons stake

The proposal seeks to address the SP Group's liquidity needs without a Tata Sons listing, through the sale of shares held by Cyrus Investments and Sterling Investment.

Noel Tata, chairman of Tata Trusts, which holds about 66 per cent in Tata Sons, tabled a proposal from the Shapoorji Pallonji Group (SP Group) at a Tata Sons board meeting on Thursday, under which the SP Group would sell Tata Sons shares held through Sterling Investment Corporation (SICPL) and Cyrus Investments (CIPL) to raise at least Rs 25,000 crore.

The minimum value of the shares would be determined in accordance with Rule 11UA of the Income Tax Rules, 1962.

The proposal is aimed at providing a route to address the SP Group’s liquidity needs without requiring a public listing of Tata Sons, the holding company of the Tata group.

“This is in continuation and reaffirmation of the Tata Trusts’ desire to offer a fair and equitable solution to the SP Group in respect of their holdings in Tata Sons”, the statement said.

The SP Group promoter family owns an 18.37 per cent stake in Tata Sons through Cyrus Investments and Sterling Investment Corporation. The group has been looking to monetise its stake in Tata Sons to repay debt raised through high-yield bonds by various group subsidiaries.