At Tata Sons’ annual general meeting (AGM) held on Monday, SP Group He also praised the strong performance of the group’s companies under the leadership of the executive team headed by the Chairman. N. Chandrasekaransuggesting that ties between the two sides may have become less frosty.
This is the second Annual General Assembly to be held after Ciro MistryFormer Tata Sons chairman, Mistry died in a road accident in September 2022. Mistry had been ousted as Tata Sons chairman in October 2016, which soured ties with the SP Group and led to years of legal battles.
“There is no hostility between the two sides,” said a person close to the matter. “SP Group has given a constructive response as a minority shareholder, given that the performance of Tata Group companies has improved substantially in recent years. The listing of Tata Sons will be beneficial to all stakeholders, including listed companies that have patiently held the shares for over thirty years.”
Tata Sons and SP Group declined to comment.
This seems to indicate a thaw between the two major shareholders, said Nishit Dhruva, managing partner at law firm MDP & Legal. “Currently, the IPO market is witnessing a boom and a strong brand like Tatas would not only unlock value for the company but also boost the overall market sentiment,” Dhruva said. “However, it will be a very mammoth and complex task for bankers and lawyers, given the group’s size and businesses.” Tata Group watchers estimate SP Group’s stake to be over Rs 3 trillion based on the value of Tata Sons’ listed portfolio alone.
The holding company’s net profit rose 57% to Rs 34,654 crore, while revenue rose 25% to Rs 43,893 crore, according to the holding company’s annual report for the year 2024. Tata Sons also paid its highest-ever dividend of Rs 35,000 per share to shareholders. Its aviation business, which includes Air India, narrowed losses from a year earlier.
SP Group has leveraged its entire 18.37% stake in Tata Sons to raise money from private credit funds to refinance $2 billion of debt.
Cyrus Mistry had unsuccessfully challenged Tata Sons over his ouster and had been involved in restructuring the SP Group to make it future-proof along with his elder brother and SP Group chairman Shapoor Mistry.
“A holding company listing can unlock the value of supply chain subsidiaries, both listed and unlisted, and offer shareholders a better return on their investment,” said Uday Ved, partner at KNAV Global Tax Practice Group. “The holding company’s board of directors can make a decision based on commercial and non-commercial parameters on whether to consider listing or not.”
SP Group’s stake in Tata Sons is held through Cyrus Investments and Sterling Investment Corp. Tata Trusts Tata Sons holds a majority stake of 66%. Articles 57-61 of the Constitution of Tata Sons regulate the transfer of shares. They stipulate that there can be no free transfer of shares without the approval of the board of directors. These provisions would need to be amended before any possible listing of Tata Sons.
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