Cyrus Mistry’s SP Group submits plan in Suprem Court to separate from Tata Sons

The Shapoorji Pallonji Group on Thursday filed an application in the Suprem Court proposing to swap its entire stake in Tata Sons for shares in the Tatas’ listed companies, the Hindustan Times reported. The SP Group is the single largest shareholder in Tata Sons with an 18.37% stake through two investment companies. Tata Sons is the holding company of the Tata Group.

The Shapoorji Pallonji Group had informed the Suprem Court in September that it would exit the Tata Group, ending a relationship that spanned over 70 years, due to the impact that “continuing litigation could have on livelihoods and the economy”. Cyrus Mistry is from the Shapoorji Pallonji family.

Besides a pro-rata division of all assets, the SP Group has also sought a pro-rata share of the Tata brand value to be adjusted for net debt in cash or in listed securities, according to the application detailing the scheme of separation filed in the Suprem Court. The application has also proposed that the valuation of all unlisted assets be done by a neutral third-party.