It has been more than six years since Cyrus Mistry was ousted as the Tata Sons Chairman, triggering a spat between the Shapoorji Pallonji scion and the steel-to-salt conglomerate. The Shapoorji Pallonji Group had been associated with Tata since it took over a 12.5 per cent stake in the firm in 1935.
Now close to nine decades later, the firm is about to pledge a part of Tata Sons shares held by it, to raise $1.6 billion.
Generating cash as interest rates sting
According to an Economic Times report, the objective of this fundraiser is to generate more cash when as interest rates are affecting the engineering and infrastructure firm.
Shapoorji Pallonji are also considering the sale of shares from its flagship firm, in order to access $2 billion.
As for the state in Tata Sons, Shapoorji Pallonji have already pledged 9 per cent of their 18 per cent stake in the conglomerate.
Part of a larger plan to slash debt
This is just another part of the company's push to slash its debt, after it sold off Eureka Forbes to Advent International and renewable energy arm Sterling and Wilson to Mukesh Ambani's Reliance Industries.
The firm's debt was around Rs 37,000 crore at the start of FY22 and had come down to Rs 23,500 crore at the time of Cyrus Mistry's death in September 2022.
The late scion and his brother had planned to cut down the company's debt by another Rs 4,000 crore by the end of FY23.
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