The battle between the Shapoorji Pallonji group of the Mistry family and the Tata group has intensified once again. According to a report, the SP group has alleged that its plans to raise funds by pledging shares are being stopped by Tata. This is a violation of the rights of shareholders. According to the SP group, this is an action to take revenge.
What is the Matter?
Mistry Group has an 18.5 percent stake in the Tata group. Mistry Group has tried to raise capital by pledging shares of the stake. Tata Sons has filed a petition in the Supreme Court against this. Through this petition, Tata’s effort is to prevent the SP group from pledging shares directly or indirectly. The SP group is planning to raise Rs 11,000 crore from various funds. In the first phase, it has tied up with a prominent Canadian investor for a portion of its 18.37 percent stake in Tata Sons for Rs 3,750 crore. Tata Sons approached the court a day after the SP group signed a firm agreement with a Canadian investor.
60 Thousand Employees will be Affected
A spokesperson for the SP group said that the purpose of this malicious action by Tata Sons is to create obstacles in our plan to raise funds. This will affect the future of one lakh migrant laborer with 60,000 employees of various SP Group units. According to the spokesperson, this will cause great harm to the group. The SP group will challenge Tata’s claim before the Supreme Court.
A Dispute between Tata and Mistry
Let us tell you that Mistry Group companies are one of the largest shareholders in Tata Sons. At the same time, Cyrus Mistry, the most important member of the Mistry family, was also made the chairman of Tata Sons in 2012 but in 2016 he was removed from the post. After this, a long legal battle broke out between the two sides. In January this year, the Supreme Court stayed the order to reinstate Mistry of the National Company Law Appellate Tribunal (NCLAT) to the post of executive chairman of the Tata Group.