The clash between the Shapoorji Pallonji Group and Tata Sons continues. Shapoorji Pallonji, that holds 18.4 percent stake in Tata sons, is said to be in talks with select private equity (PE) players to raise capital by pledging part of its stake in Tata Sons.

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CNBC-TV18 has learnt that the group had initiated talks a few months ago to raise capital and bring down debt at a group level. Sources tell CNBC-TV18 that the Tata Group has not received formal notification of SP Groups' intent to sell stake yet.

However they add that the group is of the opinion that should there be a formal intent to pledge or sell shares that SP Group holds in the company, as per the Articles of Association defined in the original share purchase document between the two groups, the right of first refusal (ROFR) lies with Tata Trusts or whoever Tata Trusts deems fit to pledge or sell the stake to.

Tata Trust can also appoint a third party to oversee the decision making with respect to the sale but that is not on the agenda at this point. Tata Sons or the Tata group did not formally comment on this story.

SP Group has been in talks with players like Brookfield to raise capital by pledging stake and have communicated the same to lenders, however, the plans are in initial stages and hence have not been communicated to Tata Sons.

First Published:Apr 1, 2020 2:23 PM IST