SP Group seeks funds for Rs 3,500 crore debt payment amid Tata Sons IPO uncertainty: Report

Shapoorji Pallonji (SP) Group, the second-largest shareholder of Tata Sons, is seeking additional funds to meet a Rs 3,500 crore ($365 million) debt payment, even as the prospect of monetising its stake in the Tata Group's parent company gains attention, news agency Bloomberg reported.

SP Group owns an 18.4 per cent stake in Tata Sons, making the Mistry family-controlled group the largest minority shareholder. The Mistry family has historically supported a public listing of Tata Sons. Business Today could not independently verify the report at the time of writing this story.

Tata Trusts collectively hold about 66 per cent of Tata Sons.

The development comes amid a dispute over the future of Tata Sons, including whether the holding company should pursue an initial public offering (IPO). On September 17, the Tata Sons board backed N Chandrasekaran for another five-year term as chairman and supported steps to meet the Reserve Bank of India's (RBI's) requirements for a public listing.

The board voted 4-1 in favour of extending Chandrasekaran's tenure. Tata Trusts chairman Noel Tata opposed both the extension and the steps towards a listing. Tata Trusts subsequently described Chandrasekaran's extension as "illegal" and termed the decision a "legal nullity".

The immediate dispute followed the RBI's September 11 rejection of Tata Sons' request for an exemption from regulations that could require it to list.

At the September 17 board meeting at Bombay House in Mumbai, Noel Tata argued that Tata Sons should make another attempt to remain private. He proposed approaching senior RBI officials, exploring legal options and seeking at least three more years to comply if those efforts were unsuccessful.

He also referred to a decision taken before Ratan Tata's death in October 2024, when the Tata Sons board had unanimously decided to remain private.

Noel Tata also proposed that Tata Sons buy back part of SP Group's 18.4 per cent stake.

Meanwhile, a public listing of Tata Sons could potentially provide a route for the Mistry family to monetise part of its holding.