CatalystIndia

₹25k Cr Share Buyback: Why Shapoorji Pallonji Group wants Tata Sons to prioritise proposal at next board meeting

Shapoorji Pallonji urges Tata Sons board to prioritize ₹25k Cr share buyback proposal.

Context

What happened: The Shapoorji Pallonji Group has urged Tata Sons to prioritise a proposal to buy back shares worth around ₹25,000 crore at its next board meeting, to raise funds to repay borrowings. Key numbers: Buyback proposal around ₹25,000 crore. SP Group holds an 18.4% stake in Tata Sons. Plan involves selective reduction of share capital over 18 months. Why it matters: The SP Group seeks to monetise part of its pledged stake to cut debt, while Tata Trusts oppose a public listing. The proposal needs NCLT approval under Section 66 of the Companies Act, 2013.

What changed

The Shapoorji Pallonji Group has urged Tata Sons to prioritise a proposal to buy back shares worth around ₹25,000 crore at its next board meeting, to raise funds to repay borrowings.

Why it matters

The SP Group seeks to monetise part of its pledged stake to cut debt, while Tata Trusts oppose a public listing. The proposal needs NCLT approval under Section 66 of the Companies Act, 2013.

Sources

mint