The Shapoorji Pallonji (SP) Group is reassessing plans for an early monetisation of its stake in Tata Sons. The group is likely to wait for greater clarity on the timing of a potential listing and the valuation of Tata Sons shares before deciding how much of its stake to sell and through which route, the Economic Times reported citing people familiar with the matter.
Shapoor Mistry, chairman of the SP Group that owns an estimated 18.37% of Tata Sons, had sought around Rs 25,000 crore from Tata Sons over the next 24 months as part of a proposal to sell a portion of the stake.
Shapoor Mistry had discussed monetising the stake with Tata Sons Chairman N Chandrasekaran and Tata Trusts Chairman Noel Tata until July.
As per an investor note circulated last month, the stake was valued at about Rs 2.3 lakh crore on a look-through basis, rather than as an IPO valuation.
“An IPO completely changes the spectrum of viewing monetisation in terms of valuation. It will have to be seen through the lens of an official valuation sought by the Tata Sons board” said an official close to the matter, the ET report said.
What options SP Group have?
After the Reserve Bank of India (RBI) order on the listing, SP Group now have option like participating in a potential Tata Sons public offering or selling part of the holding separately after merchant bankers establish an official valuation for the shares.
The valuation will be critical for SP Group, which is under pressure to raise cash against the stake.
Any valuation set ahead of a listing could also influence the eventual post-listing value of Tata Sons and, in turn, the proceeds SP Group can realise from its remaining holding, the report said.
The Reserve Bank of India (RBI) has classified Tata Sons as a Core Investment Company (CIC) as it primarily holds investments in other Tata Group companies. RBI has placed Tata Sons in the Upper Layer of NBFCs, a category that comes with stricter regulatory requirements, including a requirement to list on the stock exchanges.
Tata Sons had sought permission from the RBI to give up its NBFC registration, arguing that it no longer had debt and therefore wanted to avoid the listing requirement.
The RBI’s September 11, 2026 order rejected Tata Sons’ application to voluntarily surrender its Certificate of Registration (CoR) as a CIC.
