Shapoorji Pallonji Group is considering pledging 18.4% of its stake in Tata Sons to raise Rs 7,000 crore ($1 billion) to help repay its debts.
The Tata Sons stake is their biggest asset and the Shapoorji Group needs to infuse significant capital into their businesses.
The move reportedly comes as the organisation faces promoter pressure, besides business challenges due to the coronavirus (COVID-19) pandemic and national lockdown.
This development is noteworthy as Mistry’s son Cyrus has been engaged in a legal battle with Tata Group after being ousted as Chairman in 2016. He had taken over the post from Ratan Tata who announced his retirement in 2012.
The NCLT had ruled in Tata’s favour, the NCLAT ruling favoured Mistry.
The matter is now with the Supreme Court.
Shpoorji Pallonji group has faced troubles since undertaking an initial public offering (IPO) for renewable energy arm Sterling & Wilson Solar. It raised Rs 1,920.6 crore from part stake sale in the company, which it promised to use to clear loans.
Besides the Tata Sons stake sale, the Shapoorji Group is also looking at selling Eureka Forbes and certain roads, power and port assets.
Established in 1865, Shapoorji Pallonji Group is present in engineering and construction, infrastructure, real estate, water, energy and financial services, and has around 69,000 employees.
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