Archive · 18 Sep 2026
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.
- When
- The proposal was tabled on Thursday; the buyback would take place over 18 months.
- Where
- At a Tata Sons board meeting; the proposal would avoid listing Tata Sons on stock exchanges.
- Why
- To provide the Shapoorji Pallonji group with a partial exit from Tata Sons.
- 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