• Tue. Oct 19th, 2021

CJI-led Supreme Court bench to hear Tata-Mistry case tomorrow

ByDiane A. Gomez

May 7, 2021


The CJI-led Supreme Court bench has set November 4 as the next date to hear the Tata-Mistry case. Shapoorji Pallonji Group (SP Group) proposal to settle the dispute is also expected to be heard.

Earlier on October 29, the SP group said it had submitted a plan to the Supreme Court to end its seven-decade association with the Tata group.

The Mistry valued their participation in the Tatas at ??1.75 lakh crore, he informed the Supreme Court, which is hearing the long legal battle between the two groups that began after the Tatas’ coup on October 28, 2016, sacked Cyrus Mistry as president .

“Tata Sons is actually a two-group company, with the Tata group comprising Tata Trusts, members of the Tata family and Tata companies holding 81.6 percent of the share capital, and the Mistry family holding the balance 18.37 percent. hundred, “Shapoorji Pallonji said. Group said in a statement citing its submission to the Supreme Court.

Tata Sons is the core investment company and holding company of the Tata Group and its value derives from its stake in listed stocks, unlisted stocks, brand, cash balances and real estate assets. The value of SP group’s 18.37% stake in Tata Sons is complete ??1,75,000 crore, he said.

In their diagram of separation, the SP group said that valuation disputes can be eliminated by making a pro-rata allocation of listed assets (the value of the share price is known) and pro-rata on behalf of the mark (evaluation of the mark already carried out by Tata and published). A neutral valuation by a third party can be carried out for unlisted assets adjusted for net debt.

As a non-cash settlement, the SP Group has sought pro-rata shares in Tata listed entities in which Tata Sons currently has a stake.

For example, while Tatas owns 72 percent of TCS, SP Group’s 18.37 percent stake in Tata Sons translates into a 13.22 percent stake in TCS, which is equivalent to ??1.35,000 crore at current market cap, according to the statement.

The proportional share of the brand value adjusted to net debt can be settled in cash and / or listed securities, according to the release.

For unlisted companies, an accelerated appraisal can be performed with an appraiser selected from both sides. This can be settled in cash and / or listed securities, he added.

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