The announcement came after Tata Sons earlier in the day told the Supreme Court that it was ready to buy the Mistry family’s stake in Tata Sons at current market value
Mumbai: Shares of Shapoorji Pallonji Group company, Sterling & Wilson Solar, surged 20 per cent after the group announced that it will end its ties with Tata Sons.
On Tuesday evening, the SP Group announced its separation from Tata Sons after over 70-year-long relationship.
The announcement came after Tata Sons earlier in the day told the Supreme Court that it was ready to buy the Mistry family’s stake in Tata Sons at current market value.
Around 11.50 am, Sterling & Wilson shares on the BSE were trading at Rs 235.40, higher by Rs 38.80 or 19.74 per cent from its previous close.
Earlier in the day, it rose 19.99 per cent to its intra-day high of Rs 235.90 per share.
Shares of Forbes & Company, another SP Group company, also surged post the announcement and touched the 5 per cent upper circuit.
The share was trading at Rs 1,484.15 on the BSE, higher by Rs 70.65 or 5.00 per cent from its previous close.
The SP Group is the largest minority shareholder in Tata Sons, owning 18.37 per cent stake. On a market capitalisation basis, the SP Group’s stake is worth around Rs 2 lakh crore as per the March 2019 figures.
The cash-strapped Shapoorji Pallonji group has been looking to raise funds by pledging its stake in Tata Sons to repay its debt, but the move was blocked by the Tata Group.
Now, investors are hopeful that the stake sale would help the group resolve its debt issue.
Source: IANS
