This is not the first time Tata Group
has reiterated its stand that it would respond only in court, leading to a settlement deadlock between the two parties. On September 22, SP Group had told the SC it was ready to sell its stake in Tata Sons, provided it got an early, fair, and equitable solution. In a statement soon after, SP Group said the separation from Tata Group was necessary due to the potential impact this continuing litigation could have on the livelihoods and the economy.
SP Group has pegged the valuation of its Tata Sons stake at Rs 1.78 trillion. Tata Group has not given any statement on the valuation.
The 27-per cent rise in Tata Consultancy Services shares and a probable valuation of a SuperApp (developed by Tata Sons) have added more value to stake held by Tata Sons.
A corporate lawyer said the firm now does not have an option but to negotiate.
According to the articles of association (AoA), Tata Sons has the first right of refusal so any proposal for shares changing hands would first need to come to the board of Tata Sons. SP Group owns 18.37 per cent in Tata Sons, while the majority 66 per cent is controlled by Tata Trusts. While the total m-cap of 17 listed entities of the Tata Group amounts to Rs 12.96 trillion, the valuation of SP Group’s holdings in listed entities of Tata group companies
comes to around Rs 1.48 trillion.