Tatas weigh options amid IPO call from Shapoorji Pallonji Group
Tata Sons is understood to be preparing for multiple scenarios, including a possible initial public offering (IPO), to ensure readiness amid growing pressure from 18.4% stakeholder, the Mistry family's Shapoorji Pallonji (SP) Group, to consider a share sale, said people with knowledge of the matter. Tata Sons is the holding company of the Tata Group.
Tata Sons, Tata Trusts and the SP Group did not comment on the matter.
The scenario planning encompasses possibilities such as a public listing, partial stake sale, or complete buyout of the minority stake. However, none of these outcomes are expected immediately, given that there is no consensus on this among stakeholders at Tata Trusts, which holds 66% of Tata Sons. Apart from that, ties between the groups haven't exactly been warm ever since the ouster of the late Cyrus Mistry as Tata Sons chairman in October 2022.
The SP Group is under pressure to repay Rs 22,000 crore in debt taken at high interest rates, reportedly due by March 2025. It has conveyed to Tata that listing the holding company would benefit all stakeholders, including Tata Trusts and shareholders of listed Tata companies.
Stock Trading
Maximise Returns by Investing in the Right Companies
By — The Economic Times, Get Certified By India's Top Business News Brand
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
By — Saketh R, Founder- QuickAlpha, Full Time Options Trader
Stock Trading
Technical Analysis for Everyone — Technical Analysis Course
By — Abhijit Paul, Technical Research
