Tata Sons is understood to be preparing for multiple scenarios, including a possible Initial Public Offering (IPO), to ensure readiness amid growing pressure from 18.4% stakeholder, the Mistry famly's 's Shapoorji Pallonji (SP) Group, to consider a share sale. Tata Sons is the holding company of the Tata Group. The scenario planning encompasses possibilities such as a public listing, partial stake sale, or complete buyout of the minority stake. However, none of these outcomes are expected immediately, given that there is no consensus on this among stakeholders at Tata Trusts, which holds 66% of Tata Sons. Apart from that, ties between the groups haven't exactly been warm ever since the ouster of the late Cyrus Mistry as Tata Sons chairman in October 2022. The SP Group is under pressure to repay Rs. 22,000 crore in debt taken at high interest rates, reportedly due by March 2025. It has conveyed to Tata that listing the holding company would benefit all stakeholders, including Tata Trusts and shareholders of listed Tata companies. 

Given the complex nature of the matter, any resolution will be a long-drawn, complex affair. The SP Group prefers listing as the best option but Tata Trusts stakeholders regarded as close to the late Ratan Tata would be staunchly opposed to a stake sale. They are against any settlement talks over past allegations made against Ratan Tata and some trustees during the bitter legal feud with the SP Group following the ouster of Cyrus Mistry.

Click the icon for more details-