4 days ago
SP Group Seeks Tata Sons Stake Sale To Cut Debt
The SP Group owns a large part of Tata Sons, which is the holding company for the Tata Group.
It wants to sell part of that ownership and raise at least ₹25,000 crore.
The money would be used to pay down expensive loans.
The group does not want to wait for a possible Tata Sons stock-market listing.
Its recent refinancing still carries very high interest costs.
Some of its bonds have yields of 18.95% and 14.5%.
Lenders want to see progress on selling part of the Tata Sons stake before offering more favourable financing.
The group hopes to reduce its borrowing costs to about 12%.
The Shapoorji Pallonji Group is seeking at least ₹25,000 crore by partially monetising its 18.4% Tata Sons stake.
The group wants to reduce high-cost debt instead of waiting for a possible Tata Sons listing.
The Reserve Bank of India rejected Tata Sons’ request to surrender its core investment company registration in September.
The SP Group completed a ₹21,500-crore refinancing in July, including bonds carrying yields of 18.95% and 14.5%.
The group aims to reduce borrowing costs from about 18–19% to roughly 12%, with lenders seeking progress on stake monetisation.
- Who
- The Shapoorji Pallonji Group, controlled by the Mistry family, is seeking to monetise part of its Tata Sons holding.
- What
- It has approached Tata Sons to raise at least ₹25,000 crore through a partial stake monetisation.
- Where
- When
- The renewed request follows the Reserve Bank of India’s September decision; the group completed refinancing in July.
- Why
- To raise liquidity, repay high-cost debt and reduce borrowing costs from about 18–19% to roughly 12%.
Key facts
- Tata Sons stake
- About 18.4%, held by the Mistry family through investment companies
- Target proceeds
- At least ₹25,000 crore
- Recent refinancing
- ₹21,500 crore completed in July
- Three-year rupee bonds
- About ₹15,200 crore, carrying an 18.95% yield
- Dollar bond
- $650 million, issued at a 14.5% yield
- Target borrowing cost
- Reduction from about 18–19% to approximately 12%
- September development
- The Reserve Bank of India rejected Tata Sons’ application to surrender its core investment company registration
Sources
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