A Tata Sons lawyer informed the SC of the offer to purchase the 18% stake owned by the cash-strapped Shapoorji Pallonji Group to raise money for paying maturing debt. The SP Group has pledged the shares to borrow funds, a move that was objected to by the Tata group .
Tata Sons had asked the Supreme Court to invalidate the pledging of Tata Sons shares by the Shapoorji Pallonji Group in favour of Axis Trustee Services and IDBI Trusteeship Services. On September 5, Tata Sons moved the Supreme Court challenging these pledges — that were created in December 2019 and April this year — as well as a fresh move by the Mistry family-owned SP Group to pledge shares in favour of Canadian PE firm Brookfield Asset Management.
The embattled SP Group has raised Rs 5,000 crore by way of debentures against pledges in favour of Axis and IDBI — a fact not reported previously. Cyrus Investments has pledged almost 82% of its holding in Tata Sons in favour of Axis Trustees to secure debenture funding of Rs 825 crore, which was later modified to a total amount of Rs 3957.84 crore in April 2020, said the Tata Sons plea in the SC.
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- What the exit of Shapoorji Pallonji Group will mean for the Tatas
- Tatas vs. Shapoorji Pallonji group: What happens next?
- Tata Sons-Shapoorji Pallonji Group separation not likely to be amicable
- Tata Sons urges Supreme Court to void pledges by Shapoorji Pallonji Group
- Shapoorji Pallonji Group lenders seek clarity over pledged Tata Sons shares
- Tatas set up team for contingency funding plan to buy Shapoorji Pallonji Group’s stake
27 Comments on this Story
Maheshanand 33 days ago
The Supreme Court’s order curtailing the SP family’s ability to raise fresh funds against its stake in Tata Sons became the turning point for decision in favor of formal separation. However, this appears to be the most prudent decision in given circumstances. It remains to be seen that how much more time would it take to fructify.
Suresh Kamath33 days ago
TATA SONS surely would be Glad to Buy out SP Group shares and CLOSE their Relationship and such bickering going on DOES NOT augur well for either Group and better EXIT the SHOW for good of ALL Stakeholders
Hemant Pisat33 days ago
Despite Chandra at helm, TATA group is far from its miseries still. SP Group will be pain to manage, disengaging would be ideal, buying out would cost but buying could be necessary. Many groups businesses are bleeding profusely, which were backward or forward integrations that didn't make flush of money. Hence it's becoming tougher for them to become globally competitive enterprise.