SP Group seeks ₹25,000 cr from selling Tata Sons stake
The Shapoorji Pallonji (SP) Group is looking to sell part of its stake in Tata Sons, aiming to raise at least ₹25,000 crore.
Instead of pushing for a stock market listing, which the Reserve Bank of India just rejected Tata Sons' deregistration application, they're using a special tax rule called Rule 11UA to set a fair price for their shares.
This move was pitched by Noel Tata on September 17 and helps SP Group avoid minority and illiquidity discounts that come with selling minority stakes.
Rule 11UA sets unlisted share valuation
Rule 11UA is basically a government-approved way to figure out what unlisted shares are really worth.
It looks at assets, debts, and how much related companies are trading for on the stock market.
By using this method, SP Group can get a better deal now but still keep options open if Tata Sons ever goes public or its value jumps later.
It's a smart way for them to raise funds without losing future upside.