SP Group Open to Stake Monetization Talks in Tata Sons Amid Debt Reduction Efforts

The Shapoorji Pallonji Group, holding an 18.37% stake in Tata Sons, has shifted its stance from demanding a listing to exploring monetization options, including partial divestment. Sources reveal ongoing discussions to structure the deal, given the pledged nature of the SP Group's holdings.

Debt reduction remains a priority for the SP Group, with consolidated liabilities at Shapoorji Pallonji and Company Private Limited dropping to ₹20,000 crore in 2024 from ₹37,000 crore in 2020. Recent RBI approval for Sterling Investment Corp's extended timeline until 2028 facilitates a $3.4 billion private credit deal without yield penalties.

Tata Trusts, controlling 66% of Tata Sons, maintains its directive against listing—a lingering tension from past conflicts. The monetization MOVE signals pragmatic resolution-seeking amid structural constraints.