Tata Sons is exploring multiple options and scenarios, including an initial public offering (IPO), to ensure readiness as pressure grows from Mistry family’s Shapoorji Pallonji (SP) Group, which holds a 18.4 percent stake, to consider a share sale, The Economic Times has reported.
Tata Sons is the holding company of the Tata Group.
The scenario planning includes possibilities of a public listing, partial stake sale or complete buyout of the minority stake, the report added. None of these scenarios are expected immediately, as there is no consensus on the topic among stakeholders at Tata Trusts.
Moneycontrol couldn't independently verify the report.
The SP Group is under pressure to repay Rs 22,000 crore in debt reportedly by March. The group has conveyed to Tata that listing the holding company would benefit all stakeholders.
“Tata Sons has to be prepared for any eventuality, even if it's in the distant future. The financial outcomes have to be weighed in. Top finance and legal experts have applied their minds to prepare the holding company for multiple scenarios," the report quoted an executive as saying.
According to the report, SP Group favours listing as the best option. It is against any settlement talks over past allegations made against late Ratan Tata, the former Tata Group chiarman, and some trustees during the bitter legal feud with the SP Group following the ouster of Cyrus Mistry.
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