Tata Trusts has actually clarified that it does not support the listing of Tata Sons in the middle of SP Group’s financial obligation problems of over 52,000 crore.|Picture Credit: PAUL NORONHA/businessline
In direct opposition to the Shapoorji Pallonji Group, Tata Trusts is comprehended to have actually chosen not to support the listing of Tata Sons at this time, as it might affect its capability to work out ballot rights on substantial inter-group matters.
At the exact same time, it is open to checking out alternatives for an organized exit for the SP Group from Tata Sons over an equally appropriate duration, sources stated.
According to Tata Trusts, the inspiration revealed by SP Group for the listing of Tata Sons was mostly to protect liquidity for its shareholding, thus resolving its self-inflicted financial obligation difficulties, sources knowledgeable about advancements stated.
Sources mentioned that the troubles being dealt with by the SP Group are of its own making that can not be treated through the listing of Tata Sons. The charitable body feels that the proposition for listing was not just to offer an exit for the SP Group however likewise to weaken the unique bulk investor rights accorded to Tata Trusts, under the short articles of association of Tata Sons.
Last Friday, SP group had actually sent a highly worded declaration repeating its require a listing of Tata Sons, in which it holds 18.4 percent stake. It has financial obligation of over 52,000 crore and a listing of Tata Sons is a monetary necessary for it to raise funds to release its responsibilities.
Under Article 75 of Articles of Association, Tata Trusts can purchase out SP group’s stake. This arrangement was accepted method back in 1964 when it had actually initially obtained the stake and which was promoted by the Supreme Court in 2021.
Noting Tata Sons would indicate that it would go through noting policies that mandate bulk of minority ballot, limiting bulk investors from voting on specific resolutions. The Trustees are comprehended to have issues about the intent behind the push for listing.
Released on October 15, 2025
