Home / Business and Economy / SP Group Seeks ₹25,000 Cr From Tata Sons
SP Group Seeks ₹25,000 Cr From Tata Sons
12 Sep
Summary
- Shapoor Mistry seeks ₹25,000 crore over 24 months.
- SP Group owns 18.37% of Tata Sons, seeks to monetize 7%.
- Lender pressure requires SP Group to monetize its stake.
Shapoor Mistry, leading the Shapoorji Pallonji (SP) Group, has proposed that Tata Sons purchase a portion of the SP Group's stake in the company for approximately ₹25,000 crore. This request is intended to be fulfilled over the next 24 months.
The SP Group, which holds an 18.37% interest in the unlisted Tata Sons, is under considerable pressure from its lenders. To address immediate funding needs and reduce high borrowing costs, the group is exploring ways to monetize its significant holding.
Negotiations between SP Group and Tata Sons are ongoing, focusing on the transaction's structure and valuation. A key objective is to allow SP Group to raise capital while enabling Tata Sons to maintain its private company status.
SP Group recently completed a ₹21,500 crore refinancing in July, which addressed immediate financial requirements but resulted in costly debt. The group has repayment obligations, including approximately ₹3,500 crore due by the end of September 2026. Lenders are closely watching for tangible progress in monetizing the Tata Sons stake before considering further refinancing or relaxing loan-to-value requirements.
