SP Group Seeks Priority Review Of ₹25,000 Cr Tata Sons Share Buyback

• The SP Group wants Tata Sons to prioritise a proposal to unlock at least ₹25,000 crore from its shareholding.

• The plan involves monetising part of its 18.4% stake through a selective capital reduction or another structure.

• The request comes as Tata Sons faces renewed pressure to list its shares following an RBI directive.

The Shapoorji Pallonji (SP) Group has urged Tata Sons to review a proposal to unlock around ₹25,000 crore from its shareholding, as the debt-laden conglomerate seeks funds to repay borrowings.

According to a report by The Economic Times, the proposal was placed before the Tata Sons board by Noel Tata at its previous meeting and remains on the table. The SP Group holds around 18.4% of Tata Sons through Sterling Investments Corp and Cyrus Investments.

The group wants the proceeds to be set aside for debt repayment. Its request comes amid uncertainty over Tata Sons' potential stock market listing following a directive from the Reserve Bank of India (RBI).

SP Group Seeks Stake Monetisation

The proposal involves a selective capital reduction over 18 months, which the SP Group expects could generate gross proceeds of at least ₹25,000 crore. The valuation would be based on income-tax fair value, according to details cited by ET.

Tata Sons could consider a share buyback, a special purpose vehicle (SPV) structure or another route to help the group monetise its stake. However, the company has not announced a decision on the proposal.

The process could face regulatory scrutiny, particularly over valuation and the treatment of shareholders. A selective capital reduction would require approval from the National Company Law Tribunal (NCLT), rather than following the conventional buyback route, ET reported.

RBI Listing Directive Adds Uncertainty

The funding request comes as Tata Sons faces pressure to comply with RBI rules for upper-layer non-banking financial companies (NBFCs). The regulator rejected Tata Sons' application to surrender its registration and directed it to follow the applicable framework, which requires such entities to list within three years of being identified in that category.

The SP Group has backed the RBI's listing directive, while Noel Tata opposes a public listing. Tata Trusts, which collectively hold a majority stake in Tata Sons, have also said they have not agreed to a listing and that alternatives should be considered.

The SP Group has already completed a ₹21,500-crore refinancing in July and recently cleared around ₹3,500 crore in bond repayments after securing fresh commitments from existing lenders. However, the group continues to seek ways to unlock value from its Tata Sons investment to strengthen its finances.