Shapoorji Pallonji Group Exits Tata Group, Says Separation of Interest Best for Each Party

“The SP-Tata relationship spanning over 70 years, was forged on mutual trust, good faith, and friendship. Today, it is with a heavy heart that the Mistry family believes that a separation of interests would best serve all stakeholder groups,” it said.

The statement came within hours of the Tata group informing the SC that it is ready to buy out SP group stake. The Supreme Court today barred the Mistry group from pledging or selling its stake in Tata Sons and asked the Mistrys to maintain status quo until its next hearing on October 28, when it starts hearing final arguments in the case.

As the largest minority shareholder owning an 18.37 per cent stake, the role hitherto played by the SP Group, was always one of guardianship with an aim to protect the best interests of the Tata group, the group — which is facing a financial crisis due to Corona pandemic, said. The SP Group had always used its voting rights as a shareholder for the best interest of the Tata Group.

The statement said in 2012, when Cyrus Mistry, the scion of SP group, accepted the position of Chairman of Tata Sons, it was not only with a sense of pride, but also with a sense of duty as an ‘insider’ on the Board of Tata Sons. The Tata Group was going through significant change.