SP Group calls on Jamsetji Tata, says Tata Sons IPO is a moral imperative

Copyright © HT Digital Streams Limit all rights reserved. Tata Sons chairman Natarajan Chandrasekaran. (AFP) Summary The SP group will earn significantly from a list of Tata Sons. The group is estimated to have a total debt of £ 55,000-60,000. The Shapoorji Pallonji group, one of the largest shareholders of Tata Sons, called on a public list of the company on Friday, with a rare public statement referring to the relationship between the two -story companies. “The public listing of Tata Sons is not just a financial step – it is a moral and social imperative,” the statement reads. This will unlock a significant value for more than 12 million shareholders of the listed Tata businesses, which are indirect shareholders of Tata Sons, it states. The SP group will benefit significantly from a list of Tata Sons. The group is estimated to have a total debt of £ 55,000-60,000. In May, it raised $ 3.4 billion (about £ 29,000 crore) from private creditors by issuing non-conceptible debentures at a striking 19.75%interest rate. A public listing can help Tata Sons sell some of its 18.37% stake in the company to repay its debt. The statement from Friday called on the founder of the Tata group, Jamsetji Tata, saying that the list of Tata boys would maintain the spirit of transparency envisaged by the founding father. The statement also acknowledged the recent developments at Tata Trusts, where differences arose among the trustees. On October 7, Noel Tata, chairman of Tata Trusts, two trustees and chairman of the Tata boys, Natarajan Chandraca caran, met with the Union Finance Minister Nirmala Sitharaman, and Home Affairs Minister AMIT Shah in New Delhi. “In light of the recent developments on the internal matters of Tata Trusts, it is timely and essential to repeat our longtime position,” it says. RBI Date The comments of the SP group come after Tata Sons missed the Reserve Bank deadline on September 30 to be listed. The RBI instructed the listing as part of its scale -based regulatory framework launched in October 2022. The framework categorized non-banking financial enterprises (NBFC) in four layers of layers, middle layer, top layer and top layer-based on size, activity and perceived risk. Under this framework, Tata Sons were classified as an upper layer of non-banking financial enterprise (NBFC IL) due to the significant loans and its heavy investments in group companies. The Tata group has so far resisted the listing. The central bank did not confirm whether it had given the company an exemption from the listing, or that it would take action to violate the deadline. “We are confident that the RBI will act, as it always, in accordance with the rule of law and the spirit of justice,” the SP group said. The SP group has sold several assets over the past few years to blame its debt. This includes the manufacturer of home appliances Eureka Forbes, the Gopalpur port in Odisha and various real estate assets. It also has Afcons Infrastructure Ltd. Tata Sons and SP Group are listed in public and are working on a protracted legal battle over the promise of the group’s interest in Tata Sons to increase debt. The company’s statutes limit the sale or pledge of its shares without the approval of the board. The relationships between the two groups gained a decade ago after a split between Cyrus Mistrry and Ratan Tata, which led to the former Outer as chairman of Tata Group. ‘We confirm that our relationship with the House of Tatas extends generations, built on mutual respect and shared heritage. We remain fully committed to playing a constructive role with Tata Trusts and Tata Sons, in shaping a future that maintains the legacy of both our founding families, ‘read the SP group statement. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More topics #tata boys read next story