Tata Group mulls 4 options to buy out SP stake
Tata Group is exploring four ways to buy out the Shapoorji Pallonji (SP) Group's 18.37% stake in Tata Sons, as SP looks to end a partnership that's dated since 1936.
The split follows years of tension, especially after a high-profile fallout between Cyrus Mistry and Ratan Tata back in 2016.
The options on the table: direct purchase, equity swap, selling to an outside buyer, or taking Tata Sons public via IPO.
Challenges ahead for SP Group
A direct buyout could mean big tax bills for SP Group, while an equity swap would need green lights from regulators like the RBI.
Selling to an external buyer would force Tata Sons to go public—something the company isn't keen on.
And if they do consider an IPO, it might run into pushback from Tata Trusts who want things private.
With SP under debt pressure and every path needing regulatory approval, this decision isn't happening overnight.