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Tata Trusts tables SP plan to raise Rs 25,000 crore
Business Standard··18 Sept
Tata Trusts chairman Noel Tata on September 17, 2026 presented an SP Group proposal to sell Tata Sons shares for at least Rs 25,000 crore. Valuation would follow Rule 11UA of the Income Tax Rules, 1962. The SP Group holds about 18.37% in Tata Sons. The buyout could run in two tranches over 18 months through an NCLT capital reduction.
Prism
What It Means For You
- SP Group debt workouts may ease if the buyout raises Rs 25,000 crore as proposed.
- Tata Sons could stay private while returning cash to the Mistry side holdings.
- Investors in listed Tata companies watch whether capital reduction dilutes operating arms.
What's Happening
- Discussions involved Noel Tata, N Chandrasekaran and Shapoor Mistry earlier.
- No final agreement was announced.
- Board may fund the deal via cash flows, listed share sales or investor stakes.
Rule 11UA valuation for the buyout
- RBI recently declined Tata Sons' bid to surrender NBFC registration, reviving listing talk.
- SP Group promoters own 18.37% through two investment entities.
- Trusts said the plan offers a fair and equitable SP Group solution.
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