The Shapoorji Pallonji (SP) Group has proposed a non-cash settlement for its 18.4% stake in Tata Sons. It has offered a pro-rata division of all the assets of the holding firm as part of the settlement and has valued its stake in Tata Sons at Rs 1.75 lakh crore.
In its filing before the Supreme Court where the matter is pending and hearing is likely to resume from November 3, the SP Group has sought a direct stake in all the listed companies of the Tata Group, which includes a 13.22% stake in Tata Consultancy Service based on the the formula suggested by it. It has said as per this scheme its stake in other listed firms of the group would be below 10%. It has also sought a pro-rata share of the Tata brand and asked for a neutral third-party valuation for the unlisted assets adjusted for net debt.
The SP Group’s proposal said as a non-cash settlement, it should get pro-rata shares in listed entities of the Tata Group where Tata Sons currently owns stake. “For example, 72% of TCS is owned by Tata Sons and SP Group’s ownership of 18.37% translates to 13.22% shareholding of TCS (valued at Rs 1,35,000 crore at present market capitalisation of TCS),” it said in its affidavit.