In its petition to the Supreme Court, Shapoorji Pallonji (SP) family on Thursday quoted Rs 1.75 lakh crore as the value of their 18.37 per cent stake in Tata Sons. The family has formally sought the separation from Tata Sons in the Supreme Court.
"Tata Sons is effectively a two-group company, with the Tata Group comprising Tata Trusts, Tata family members and Tata companies holding about 81.6 per cent of the equity share capital, and the Mistry family owning the balance 18.37 per cent," SP family said.
The value of Tata Sons, the holding company of Tata group, arises from its stake in listed equities, non listed equities, the brand, cash balances and immovable assets, they said. "The value of 18.37 per cent stake of the SP Group in Tata Sons is more than Rs 1,75,000 crore," they added.
The SP family said, the disputes over valuation can be eliminated by doing a pro-rata split of listed assets (share price value is known) and pro-rata share of the brand (brand valuation already done by Tata and published). A neutral third-party valuation can be done for the unlisted assets adjusted for net debt (i.e. debt less cash).
As a non-cash settlement, SP Group can be given pro-rata shares in listed entities of the Tata Group where Tata Sons currently owns stake, they said. For example, 72 per cent of Tata Consultancy Services Ltd. (TCS) is owned by Tata Sons.
SP Group's ownership of 18.37 per cent translates to 13.22 per cent shareholding of TCS, valued at Rs 1,35,000 crore at present market capitalisation, they added. The process will help Tata Sons continue to have control over the underlying assets with over 51 per cent stake in TCS, they said.
They also claimed that the pro-rata separation of assets and liabilities would be a fair and equitable solution to all stakeholders. Largely non-cash settlement would ease pressure on Tata to raise large quantum of debt and minimise any dispute on valuation, they added.