Industry Odisha Bureau, Sep 21: The SP Group now backs a Tata Sons listing. Its proposed 2.5% stake sale stalled. The group holds about 18.37% of Tata Sons. It wants to monetise part of it.
The Shapoorji Pallonji Group is backing a Tata Sons listing. A proposed stake sale has been delayed, people familiar with the matter said. The SP Group owns about 18.37% of Tata Sons. That is a significant minority holding. Chairman Shapoor Mistry has publicly backed the listing.
Limited stake sale hits roadblock
The proposal involved roughly 2.5% of Tata Sons. It aimed to monetise part of the SP Group’s holding. The group discussed it with Tata Trusts chairman Noel Tata.
A tax-efficient structure was explored. A bank or financial institution could have participated. Cash proceeds could have been paid over a defined period. The structure could potentially have let Tata Sons avoid listing.
Talks focused on a limited sale, not immediate monetisation of the whole stake. The proposal later stalled at Tata Sons, people said. Noel Tata suggested separate teams from both sides examine it. SP Group and Tata Trusts did not comment.
Listing offers another route
A listing could create a market-based valuation. That could give the SP Group’s holding a clearer reference price. Large private stakes can be hard to monetise. A listing could widen the options.
An investor might buy part of the stake before an IPO. Monetisation could also come through or after an IPO. Ketan Dalal of Katalyst Advisors says it need not be one route. Post-listing lock-ins would need consideration. Pricing would matter to investors and the SP Group. Listing does not guarantee liquidity.
RBI keeps listing question in focus
RBI requirements have brought the listing question into focus. The proposal reached the Tata Sons board only after the RBI’s directive, people said. No listing decision has been confirmed.
Earlier share swap offered different route
A July proposal involved a share swap. The SP Group would receive shares in a basket of listed Tata companies. These would be exchanged for part of its Tata Sons stake.
Refinancing adds financial context
The stake is held through Sterling Investments Corp and Cyrus Investments. It has been pledged against borrowings. The group completed a ₹21,500 crore refinancing in July. It told investors it planned to monetise part of its holding within 18 months. Routes included a listing or share sale.
It faces about ₹3,500 crore of repayments by September-end. These obligations add context to the monetisation talks.
Tata leadership adds another layer
N Chandrasekaran earlier said he would not seek reappointment. His term was due to end in February 2027. He did not take part in the later monetisation discussions. He then reversed his exit. The Tata Sons board approved his reappointment on September 17. He will continue as executive chairman for five years.
What happens next
Several monetisation routes remain possible. None has been confirmed. Valuation, liquidity and regulatory considerations will shape the choice. A Tata Sons IPO still depends on future decisions.
