The Shapoorji Pallonji Group wants Tata Sons to prioritize a liquidity proposal seeking at least ₹25,000 crore, The Economic Times reported, as the group looks to repay debt amid high refinancing costs.
Tata Trusts said Noel N. Tata, its chairman, presented the plan at a Tata Sons board meeting on Sept. 17. The proposal covers shares held by Sterling Investments Corporation Private Limited and Cyrus Investments Private Limited, and calls for two tranches over 18 months. It sets minimum gross consideration at ₹25,000 crore, with valuation determined under Rule 11UA of India’s Income Tax Rules, 1962.
The proposal describes a selective capital reduction involving the National Company Law Tribunal (NCLT). Section 66 of India’s Companies Act, 2013, requires a special resolution and Tribunal confirmation for a reduction in share capital. Tata Trusts said Noel Tata asked the board to take steps toward the NCLT process; its statement did not announce approval of the plan.
Tata Sons’ FY2025-26 annual report spells the first investment company’s name as Sterling Investment Corporation Private Limited, while the proposal statement uses Sterling Investments Corporation Private Limited. The annual report lists 37,122 ordinary shares each for Sterling and Cyrus Investments, out of 404,146 ordinary shares issued as of March 31, 2026. Together, the two holdings equal 18.37% of issued ordinary shares; the proposal does not specify how many shares would be sold.
The group’s borrowing costs provide context for its liquidity request. Moneycontrol reported Oct. 1 that the SP Group completed a ₹21,500-crore refinancing in July. The outlet said it included around ₹15,200 crore in three-year zero-coupon bonds yielding 18.95%, as well as a $650 million bond yielding 14.5%. Moneycontrol also reported that lenders wanted progress on monetizing the Tata Sons stake before considering further refinancing.
Tata Trusts listed potential funding routes that included cash flows, proceeds from listed-share sales, investment from backers of newer businesses and listing some businesses through an offer for sale. The statement did not settle on a final mix.
The proposal comes amid disagreement over whether Tata Sons should list. The SP Group has backed a listing, while Tata Trusts said it had not agreed and wanted alternatives considered, within a broader Tata Sons governance dispute. Tata Trusts said another board meeting would follow a review of options but gave no date.