Noel Tata tables ₹25,000 cr SP Group share monetisation plan for Tata Sons
SP Group owns 18% in Tata Sons and is looking at various ways to raise liquidity to repay debt
Tata Trusts chairman Noel Tata introduced a monetization plan for SP Group's shares in Tata Sons to the board of Tata Sons. SP Group holds an 18% stake in the holding company and aims to raise liquidity to repay debt. The proposal suggests buying back shares held by SP group entities in two tranches over 18 months, netting a minimum of ₹25,000 crore.
SP Group prefers a buyout in two tranches over an 18-month period, with Tata shares valued according to income tax fair value. Additionally, SP Group proposes selective capital reduction through the National Company Law Tribunal (NCLT). Tata proposed exploring various avenues to raise funds, including using internal cash flows, selling listed shares, bringing in investors for newer businesses, and potentially listing some businesses through an offer for sale.
Tata requested the board to initiate the NCLT process and authorize the operating team of Tata Sons and the Tata Trusts to continue discussions with SP Group, as well as with the bankers involved.
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