August 8, 2025

Get ready for an intriguing twist in one of India’s biggest corporate tales! Tata Sons, the mighty holding company of the Tata empire, has quietly kicked off talks with its minority shareholder, the Shapoorji Pallonji (SP) Group. Why? To discuss how SP can monetize or possibly exit their 18.37% stake in Tata Sons. This is huge because the SP Group’s shares are currently pledged with lenders, meaning they are used as collateral for loans. Now, for the first time since the drama in 2016 that ousted Cyrus Mistry as Tata Sons chairman, things are looking hopeful between the two camps. Tata Sons chairman N Chandrasekaran recently met SP Group chairman Shapoor Mistry at a secret spot, marking their first formal face-to-face after many cold years. Though the talks are still in baby steps, an insider told us, "It was done to get a sense of expectation from the SP side. It will be a long journey towards any final settlement talks between the two." Shapoor Mistry, the elder Mistry sibling who keeps a low profile, is back in the scene after his younger brother Cyrus tragically died in a car accident in 2022. Last week, Tata Trusts – the powerhouse behind Tata Sons – made a game-changing decision. They passed a resolution that firmly states Tata Sons should remain an unlisted private company. But here’s the catch: they want to start talks with the SP Group to help them find an exit strategy. The resolution clearly said, "It was agreed at the meeting to request the chairman of Tata Sons to explore all possible avenues for ensuring that there was no change in the status of Tata Sons as it currently stood. This included a dialogue with the minority shareholders for providing an exit to them." Mr. Chandrasekaran is now steering these high-stakes negotiations and will keep Tata Trusts updated, sources reveal. The goal is to keep Tata Sons’ magic intact while respecting the SP Group’s rights as minority partners. Legal expert Ashish K Singh chimed in, saying, "It is in tune with the principles of corporate governance that a healthy relationship is maintained with minority shareholders of a company. Moreover, if channels of communications are open, it would ultimately help in smooth decision making in the company." There’s drama on the financial front too. The SP Group, known for construction and engineering, has been pressed hard by debt and cash crunch, worsened by the COVID pandemic. To ease pain, they’ve sold big assets like Eureka Forbes, Sterling & Wilson Solar (to Reliance), and others, plus shook up their real estate holdings. Earlier this year, SP formally asked the Reserve Bank of India to support a public listing of Tata Sons, claiming it would be good for everyone involved. Apparently, Tata Sons themselves applied to deregister as a core investment company from RBI guidelines, aiming to stay unlisted by becoming zero-debt. But the clock is ticking since RBI rules say such companies should list by September. Backed by private credit funds and holding Tata shares worth over Rs 3 lakh crore, the SP Group’s move to talk and maybe exit shows a fresh saga unfolding in the Tata story. Will this lead to partners shaking hands and the group sailing smoothly forward? Time will tell, but the early talks have certainly got everyone watching!

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Tags: Tata sons, Shapoorji pallonji group, Minority shareholder, Stake monetisation, Tata trusts, Chandrasekaran,