Noel Tata seeks scrutiny of SP Group's Rs 25,000 cr
Mumbai: Tata Sons director Noel Tata has requested the board to evaluate a ₹25,000-crore funding proposal from SP Group and a restructuring plan by Tata Trusts, according to two letters sent on October 29. Noel Tata, who chairs both Tata Sons and Tata Trusts, is seeking a thorough assessment of both proposals, including their legal and regulatory implications, funding arrangements, and implementation timelines.
The SP Group, holding about 18.38% of Tata Sons, has proposed a capital reduction plan to buy out shares for ₹25,000 crore over 18 months through a selective reduction of issued, subscribed, and paid-up ordinary share capital. The valuation would be determined by a merchant banker or registered valuer. Additionally, Noel has asked the management to review a proposal by the Tata Trusts and Sir Ratan Tata Trust to merge two operating subsidiaries, TESS and TCE, with Tata Sons.
The trusts argue that this reorganization would help Tata Sons fall outside the classification of an NBFC and CIC, potentially providing it with sufficient operating revenue and reducing its investments as a proportion of net assets.
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