Tata Sons shares are not transferable, says Trusts
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Mumbai: Edgy over Shapoorji Pallonji (SP) Group's plans to roll over pledged Tata Sons shares to refinance over $2 billion debt, Tata Trusts has, for the first time, officially said these are non-transferable. The Trusts, which holds a controlling 66% in group holding company Tata Sons, is worried about possible litigation with lenders over enforcing the security in case SP Group defaults. "As is publicly known, Tata Sons' shares are not freely transferable," said Tata Trusts chief executive Siddharth Sharma in response to ET's emailed queries on the Trusts' legal position on the matter. SP Group, promoted by the Mistry family, has pledged its entire 18.5% in Tata Sons held through two entities to secure monies from private credit funds such as Ares and Farallon. Additionally, it needs to raise funds for a separate repayment due in three months and refinance existing high-cost borrowings. Lenders are assessing wh...