Tata-Mistry case: SP Group debt recast may face hurdle, valuation a thorny issue

The Supreme Court’s judgment on Friday upholding the removal of Cyrus Pallonji Mistry as the executive chairman of Tata Sons and subsequently as director in Tata companies is likely to stymie the Shapoorji Pallonji Group’s plan to cut debt, said experts.

Apart from completely overturning the National Company Law Appellate Tribunal’s (NCLAT) ruling on reinstatement of Mistry, the apex court said it would not go into the question of deciding a “fair value compensation” for the SP Group so that it could exit the Tata Group.

“The Tatas and Mistry will have to do proper valuation of Mistry’s 18.37 per cent stake in Tata Sons.