Tata, SP Group explore share swap to unlock Tata Sons stake amid valuation divide

Tata Sons and SP Group are exploring a share-swap arrangement under which the Shapoor Mistry-led SP Group would exchange part of its 18.37 percent stake in Tata Sons for a basket of listed Tata group company shares, to help repay its estimated debt of around Rs 60,000 crore. The combined market capitalisation of the group's 16 listed companies stands at Rs 25.28 lakh crore, with Tata Sons' stakes valued at about Rs 11.9 lakh crore, though the two sides remain divided on valuation and structure. Separately, SP Group has secured about Rs 21,500 crore in refinancing commitments, including Rs 15,200 crore of three-year rupee bonds priced at around 18.95 percent yield and roughly 650 million dollars in dollar bonds at about 14.5 percent yield, expected to close on July 20.