After living together for 70 years, Shapoorji Palonji Group will split from the Tata Group

Mumbai, Ta. Tuesday, September 22, 2020

The Shapoorji Palonji group will sell its stake in Tata Sons and separate from the Tata group, the SP group told the Supreme Court today. This will mark the end of a 70-year-old relationship between India's two largest groups.

SP Group holds 18.5 per cent stake in Tata Sons. The withdrawal of SP Group from Tata Sons is in the interest of shareholders, the SP Group said in a statement. The group told the apex court that it was necessary to separate from the Tata group as the legal battle would only lead to economic losses.

Earlier, the Tata group had told the Supreme Court that it was ready to buy a stake in SP Group. Following the Tata group's statement, the SP group announced its withdrawal from the Tata group.

Earlier, the apex court had stayed the transfer or mortgage of Shapoorji Polonji (SP) Group and Cyrus Mistry from Tata Sons Pvt Ltd (TSPL) till October 28.

A bench comprising Chief Justice S A Bobde, Justice A S Bopanna and Justice V Ramasubramaniam also directed Tata Sons and SP Group not to take any action on the mortgaged shares till October 28, the next date of hearing.

SP Group, which has an 18.37 per cent stake in Tata Sons, said TSPL has applied to the Supreme Court to block our plan to mortgage the shares to raise funds.