InvestorQ : Do you see any resolution in sight for the Tata Sons share pledge battle between the Tata family and the Mistry family?
diksha shah made post

Do you see any resolution in sight for the Tata Sons share pledge battle between the Tata family and the Mistry family?

Answer
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Deepa Salunkhe answered.
4 weeks ago


The legal battle between the Tata family and the Mistry family has been going on for over 4 years now but a new dimension got added to it recently after the Tatas moved the Supreme Court to block pledge of Tata Sons shares by Mistry family to raise funds for the group.

But in the entire battle, the role of Brookefield has come to the fore. When the Mistry family was talking to Brookefield about pledging shares of Tata Sons, the fund got in touch with the Tatas to check if there would be issues. That set off the entire legal case.

While Brookefield, like any prudent investor, was trying to ensure that all stops were covered legally, the question does arise if Brookefield was justifying in talking to the Tatas about the Mistry family pledging shares owned by them. But that is a different story.

It may be recollected that the Pallonji Mistry group has been trying to raise funds by pledging shares of Tata Sons to tide over the liquidity crisis in the SP group, following the COVID lockdown. However, Tata Sons had legally objected to the pledge.

The contention of the Tatas was that the pledge was tantamount to a sale; in which case, Tatas should have right of first refusal. Tata Group alleges that the Mistry family is doing indirectly what it is not permitted to do directly due to Tata Sons being a private company.