InvestorQ : What is the latest development on the Tata Mistry case?
indhumathi Sayani made post

What is the latest development on the Tata Mistry case?

7 months ago

Supreme Court has listed November 4 as the next date for hearing in the Tata-Mistry case where the Shapoorji Pallonji Group’s has proposal a separation based on a swap of shares of listed Tata companies in the same proportion as their stake in Tata Sons.

The Mistry family has pegged its holdings in Tata Sons at Rs.175,000 crore but a long-drawn legal battle between the two groups looks to the final act. Currently, the Tata Trusts hold 81.6% in Tata Sons while the Mistry family owns the balance 18.37%. Mistry has asked for a court monitored separation.

The Pallonji group has suggested that disputes over valuation can be eliminated by doing a pro-rata split of listed assets as well as a pro-rata sharing of the brand and unlisted assets net of liabilities. Mistry family has offered this as an alternative non-cash settlement.

This is how it could roughly work. For example Tatas own 72 per cent of TCS and since Mistry family owns 18.37% in Tata Sons translates; it would translate effectively to 13.22% in TCS, which is worth Rs.140,000 crore at present market capitalisation.