Shapoorji Pallonji Group, one of the largest shareholders of Tata Sons, on Friday sought public listing of the company. A public statement was issued on the occasion highlighting the relationship between the two prestigious business houses. The statement said that the public listing of Tata Sons is not just a financial move – it is a moral and social imperative. It said this would provide significant value to the more than 1.2 crore shareholders of listed Tata companies, who are indirect shareholders of Tata Sons.
SP Group will benefit greatly from the listing of Tata Sons. The total debt of the group is estimated to be Rs 55,000-60,000 crore. In May, it had raised $3.4 billion (about Rs 29,000 crore) from private lenders by issuing non-convertible debentures at a whopping interest rate of 19.75 per cent. Public listing can help Tata Sons repay its debt by selling its 18.37 percent stake in the company.
Jamsetji Tata remembered
Referring to Tata Group founder Jamsetji Tata in Friday’s statement, it was said that the listing of Tata Sons will strengthen the spirit of transparency envisioned by its founding father. The statement also acknowledged recent developments at Tata Trusts, where differences of opinion among trustees have come to the fore. On October 7, Tata Trusts Chairman Noel Tata, along with two trustees and Tata Sons Chairman Natarajan Chandrasekaran, met Union Finance Minister Nirmala Sitharaman and Home Minister Amit Shah in New Delhi. The statement said that in view of recent developments related to the internal affairs of Tata Trusts, it is important to reiterate our long standing position in a timely manner.
Need to follow RBI guidelines
Mistry said the Reserve Bank of India (RBI) had set the deadline for listing Tata Sons in the upper tier classification by September 30, 2025. He stressed the need to view this directive seriously and with respect for regulatory commitments. According to Mistry, the RBI’s scale-based regulatory framework makes it clear that an NBFC should not act in a manner detrimental to the interests of its investors. Mistry said that RBI is a constitutional and autonomous institution and it will take decisions based on the principles of equality, justice and public interest. Tata Trust holds 66 percent stake in Tata Sons, the promoter and parent company of Tata Group. He said that Shapoorji Pallonji Group has always supported the public listing of Tata Sons.