The shares of companies of Mistry family owned Shapoorji Pallonji Group surged on Wednesday after it announced its separation plans from Tata Group. Shares of Sterling & Wilson Solar hit 20 per cent, its biggest single day gains since August last year. It currently trades at 235.70 apiece. Similarly, Forbes & Co hit 5 per cent upper circuit at Rs 1,484.15 apiece.
On September 22, Shapoorji Pallonji Group had said: "mutual co-existence of both groups at Tata Sons would be infeasible... and separation from the Tata group is necessary". Shapoorji Pallonji group owns 50.6 per cent stake in Sterling & Wilson and 72.6 per cent in Forbes, as of 30 June.
The Mistry family owns 18.37 per cent in Tata Sons and is its largest minority shareholder. It is expected that the proceeds that Shapoorji Pallonji Group receives after making an exit from Tata Group could be used to repay debt of Sterling & Wilson Solar. "The promoters have repaid only Rs 103 crore of the Rs 1,000 crore it owed to the company, the deadline for which ends this month," Sterling and Wilson had said in a regulatory filing.
On Tuesday, the lawyer of Tata Sons had informed the Supreme Court that the 150 year-old conglomerate is willing to buy the 18.37 per cent stake owned by Shapoorji Pallonji Group. It is for the second time, Tatas evinced interest in acquiring Mistrys' stake. Tata Sons, which is the holding company for around 100 companies, has an enterprise valuation of $100 billion. But Shapoorji Pallonji Group claimed that the 18.37 per cent is valued Rs 1.75 lakh crore.