The difference between Shapoorji Pallonji Group and Tata Group is far from over. Now, the cash-strapped Shapoorji Pallonji group has threatened to file for unquantified damages against the Tatas for wrecking its fund-raising plan, according to Telegraph India.
The group was planning to raise funds on a small portion of the 18.4 per cent stake held in Tata Sons.
Two days ago, Cyrus Mistry’s group sent a legal notice questioning Tata group’s holding company and the members of its board of directors, individually and collectively, for seeking to block the Mistry family from raising funds against the security of the Tata Sons shares.
The group has asked the Tatas to respond to its notice within three working days from receiving the notice, failing which the group will initiate action against the Tatas.
The notice accused the Tatas of seeking to create panic among the lenders to the SP Group entities. “The real objective was to spread panic among lenders and financial institutions and cause our clients colossal damage,” the notice said.
While this battle between Tatas and Mistry Camp is not new, the fresh round of difference started after Shapoorji Pallonji group entities signed a deal with Brookfield — a marquee Canadian investment firm. As per the deal, the group was planning to raise Rs 3,750 crore as part of the first tranche of its fundraising.
The group is facing a huge cash crunch and was planning to raise Rs 11,000 crore to find some relief.
When the Tatas found that the group was planning to pledge a portion of its share, it approached the Supreme Court on September 5. In the petition, the Tatas are seeking the court’s intervention in restraining the Mistry group from raising capital against their Tata Sons shares.
Through the petition, the Tatas sought to prevent the SP Group from creating any direct or indirect pledge of shares.