Mumbai, September 14: Shapoorji Pallonji Group chairman Shapoor Mistry is looking to raise ₹25,000 crore from the unlisted holding arm of the Tata Group as it looks to urgently settle its debt. The SP Group currently holds about 18.37% stake in Tata Sons, and is seeking ₹25,000 crore from the holding entity even as it looks to unlock its long standing stake in the group.
Shapoor Mistry has reportedly submitted a formal proposal to Noel Tata, Chairman of Tata Trusts, with a strategy to unlock liquidity, even as Noel Tata tries to maintain Tata Sons’ guarded private-company status.
With SP Group’s ₹21,500 crore refinancing efforts completed in July, the group aims to repay its obligations of ₹3,500 by the end of September. Its lenders are looking for visible progress on monetizing the Tata Sons stake before considering further refinancing costs or easing their loan to value requirements, reports in the media have claimed.
A failure to meet the September repayment deadline could be treated as a default, even as the obligation comes from an earlier financing agreement was expected to be funded before its July refinancing efforts.
However, the negotiations between the SP Group and Tata Sons have made limited progress due to valuation differences and the structure of the trransactions. With Tata Sons holding a significant stake in high value unlisted companies like Air India and Tata Electronics, the valuation features remain complicated. Noel Tata is expected to play a central role in the discussions to monetize these investments.
For the SP Group, monetising a fraction of its investment in Tata Sons remains critical for it to secure vital liquidity, averting potential default, and stabilizing its financial footing. For the Tata Group, reaching an agreement will require a delicate balancing act—resolving the SP Group’s exit needs while safeguarding its own structural, legal, and regulatory preferences.
