Mistrys plan to raise Rs 6,600 crore via debentures in fresh twist to the fight with Tata Sons

Shapoorji Pallonji’s promoters plan to raise Rs 6,600 crore by selling debentures to investors that will be secured against shares of Tata Sons, according to documents filed with the Registrar of Companies by a Mistry family entity on September 25.

The plan is seen by legal experts as potentially controversial given that Tata Sons has in the past objected to the Mistrys pledging their stake in the conglomerate’s holding company. The Mistrys own an 18% stake in Tata Sons, the holding company of the Tata Group. Relations between the two sides have been acrimonious ever since Cyrus Mistry’s October 2016 ouster as chairman of Tata Sons.