3 hrs ago
Noel Tata proposes ₹25,000-crore Tata Sons buyback for SP Group
Noel Tata suggested that Tata Sons buy back some shares owned by the Shapoorji Pallonji group.
The proposed buyback would be worth ₹25,000 crore.
It would give the Shapoorji Pallonji group a partial exit without listing Tata Sons on the stock market.
The shares would be bought in two parts over 18 months.
Their value would be calculated using Income-tax fair value.
Tata could raise money from cash, selling listed shares, investors, or business listings.
Noel Tata also asked for steps toward a selective capital reduction through the National Company Law Tribunal.
Shares of several major Tata companies rose after N. Chandrasekaran received a new five-year term as executive chairman.
Noel Tata proposed a ₹25,000-crore plan to give the Shapoorji Pallonji group a partial exit from Tata Sons.
The proposal would have SP Group sell Tata Sons shares back to Tata Sons without a stock-market listing.
The buyback would occur in two tranches over 18 months, using Income-tax fair value for valuation.
Noel Tata suggested funding through internal cash flows, listed-share sales, new investors, business listings, or offers for sale.
Tata Investment Corporation and Tata Motors Passenger Vehicles rose 4.5% after N. Chandrasekaran received a fresh five-year term.
- Who
- Noel Tata proposed the plan for the Shapoorji Pallonji group, following discussions with N. Chandrasekaran and Shapoor Mistry.
- What
- A proposed ₹25,000-crore buyback of Tata Sons shares from the Shapoorji Pallonji group.
- Where
- At a Tata Sons board meeting; the proposal would avoid listing Tata Sons on stock exchanges.
- When
- The proposal was tabled on Thursday; the buyback would take place over 18 months.
- Why
- To provide the Shapoorji Pallonji group with a partial exit from Tata Sons.
Key facts
- Proposed buyback value
- ₹25,000 crore
- Seller
- Shapoorji Pallonji group
- Buyer
- Tata Sons
- Payment structure
- Two tranches over 18 months
- Share valuation
- Income-tax fair value
- Potential funding sources
- Internal cash flows, listed-share sales, new investors, business listings, or offers for sale
- Capital-reduction proposal
- Noel Tata requested steps toward a selective process through the National Company Law Tribunal
Sources
Related news
Tata Trusts proposes ₹25,000 crore SP Group stake buyout
Tata, SP Group Weigh Share Swap, Buyout for Tata Stake
Noel Tata Tables Proposal to Monetise Tata Sons Stake
SP Group Reassesses Early Monetisation of Tata Sons Stake
SP Group Seeks ₹25,000 Crore Tata Sons Buyback
RBI Listing Directive Puts Tata Sons Stakeholders in Focus
Indian Stocks Face Resistance as Oil Eases Before Weekly Close
India Auto Exports Jump as Two-Wheelers Offset Car Decline
Sensex Slips as Nifty Rises; Tata Stocks Gain
Tata Sons Board Approves Stock Exchange Listing, Report Says
