Shapoorji Pallonji Group, the second-largest shareholder in India's Tata Sons, has proposed a plan to sell a part of its stake, worth 250 billion rupees ($2.61 billion), in the holding company, according to a statement by Tata Trusts on Thursday.
Tata Trusts Chairman Noel Tata tabled the proposal at a Tata Sons board meeting, which laid bare its rift with the company.
The charity holds 66% of Tata Sons, the holding company that controls more than 30 Tata Group companies, including IT firm TCS and Tata Motors.
The SP Group has proposed that this sale could come via a share buyout in two tranches over 18 months.
"Noel N. Tata suggested that various avenues could be used for the purpose of raising the funds required for this purpose, including from internal cashflows; sale of listed shares; bringing in an investor into some of the newer businesses and listing, upon an offer for sale, of some of the businesses," Tata Trusts said.
An email sent to a spokesperson for Tata Sons seeking a response was not immediately answered.
The SP Group holds 18.4% in Tata Sons. The infrastructure and construction conglomerate has been laden with debt and raised $2.25 billion in July at high interest costs.
It has been seeking to monetise its shareholding in Tata Sons to reduce debt, and the latest fund-raising terms included an assurance to investors that the group would sell part of its Tata Sons stake through a listing or share sale within 18 months.
