SP Group proposed plan to monetise some holdings, can raise Rs 25k crore: Noel Tata

MUMBAI: Tata Trusts chairman Noel Tata on Thursday said the debt-laden Shapoorji Pallonji Mistry group has proposed a plan to monetise a small part of its holding in Tata Sons, which can help generate Rs 25,000 crore.The plan shared with the Tata Sons board follows discussions between Noel, Tata Sons chairman N Chandrasekaran and SP group chairman Shapoor Mistry.As part of the plan, Tata Sons will acquire shares held by Sterling Investments Corporation and Cyrus Investments over 18 months. The acquisition will be based on the valuation of Tata Sons shares in line with fair value norms under the Income Tax Act. The holding company will approach the National Company Law Tribunal to initiate a selective capital reduction process, Tata Trusts said in a statement after the Tata Sons board meeting.At the meeting, Noel suggested that multiple options can be explored to raise funds, including tapping into internal cash flows, sale of some listed shares, roping in investors for newer businesses, and listing certain businesses through offers for sale of shares."He requested the board to take necessary steps for initiating the NCLT process and authorise the operating team of Tata Sons and the Tata Trusts to continue discussions with the SP Group, and the bankers, and report to the board. This is in continuation and reaffirmation of the Tata Trusts' desire to offer a fair and equitable solution to the SP Group in respect of their holdings in Tata Sons," the statement said.Get the latest Business News and Live updates. Download the TOI app.