In a bid to end the long standing dispute with Shapoorji Pallonji Group , Tata Sons Ltd. may shell out Rs 21,900 crore to buy a part of Mistry's 18.4% stake of the holding company.
The company is likely to table the offer on October 28 in the Supreme Court where a dispute between the Tata Group and the Shapoorji Pallonji Group will be heard, Mint reported citing two sources familiar with the matter.
To secure funds for the deal, Tata Consultancy Services (TCS) has come to the rescue for the parent group. The IT major on Wednesday announced a mega-Rs 16,000 crore buyback plan at Rs 3,000 per equity share and an interim dividend of Rs 12 per share.
Tata Sons is expected to garner around Rs 11,528 crore from the share buyback and will recieve Rs 3,244 crore as dividend income.
The conglomerate is also in talks with external investors, including sovereign and pension funds to arrange potential stakeholders for the Mistry family’s stake, one of the sources said.
“While the Mistry family may not be against selling the stake in a staggered manner, their final decision will depend on the valuation offered by Tata Sons. It is expected that Tata Sons’ offer will factor in a holding company or conglomerate discount, but it’s unclear whether the Mistrys will accept the proposal," the second source stated.
DH could not independently verify this report.