₹25k Cr Share Buyback: The Shapoorji Pallonji (SP) Group has urged Tata Sons to prioritise a proposal to buy back shares worth around ₹25,000 crore at its next board meeting, as the debt-laden conglomerate looks to raise funds to repay its borrowings, according to a report by Business World.
The proposal was presented to the Tata Sons board at its previous meeting by Tata Trusts chairman Noel Tata and remains under consideration. The SP Group is seeking to monetise part of its 18.4% stake in Tata Sons, held through Sterling Investments Corporation and Cyrus Investments, to generate funds for debt repayment, the report said.
The proposed plan involves a selective reduction of Tata Sons’ share capital over 18 months, which could generate gross proceeds of at least ₹25,000 crore for the SP Group. The transaction’s valuation would be based on fair value determined under the applicable income-tax rules.
The report further revealed that the SP Group has been exploring options to unlock value from its investment in Tata Sons to strengthen its balance sheet and reduce its debt burden. Its stake in the holding company has been pledged against borrowings, making it a potential source of liquidity.
In July, the group completed a ₹21,500-crore refinancing exercise and subsequently repaid bonds worth around ₹3,500 crore, easing immediate liquidity pressures. However, it continues to explore additional funding avenues to meet its debt obligations and improve its financial position.