Ace investor Rakesh Jhunjhunwala. | Photo credit: BCCL
Bangalore: Ace investor Rakesh Jhunjhunwala said that Tata Group may buy Shapoorji Pallonji’s stake and believes the group will do well in the coming years under the leadership of Tata Sons chairman N Chandrasekaran.
When asked about the ongoing dispute between the Tata Group and one of its largest shareholders, the Shapoorji Pallonji group, he said: “The Tatas know best. I think they will buy in some way or another. They would not have told the court if they didn’t have A plan in mind. I don’t think they will buy from the cash flows of the group companies. They can buy by selling a stake in a listed entity. ” I was chatting with ET NOW managing editor Nikunj Dalmia.
Cyrus Mistry’s Shapoorji Pallonji group recently said it wants to exit Tata Sons and sought Rs 1.78 lakh crore for its over 18% stake. “The SP-Tata relationship, which spans more than 70 years, was forged on the basis of mutual trust, good faith and friendship. It is with heavy hearts that the Mistry family believes that a separation of interests would be best for all, “the statement said.
ET NOW reported on Wednesday that the Tata Group has internally rejected Cyrus Mistry’s Shapoorji Pallonji’s sale price of Rs 1.78 lakh crore. Tata Sons has done its own study and came up with a significantly lower figure for the Tata Sons assessment. A court-supervised appraiser can resolve the matter, although mediation is also a possibility. So far, Tata Sons has neither formally accepted nor rejected Shapoorji Pallonji’s offer to sell its 18.4% stake. the Economic times reported that Tata Sons has created a working group to prepare a contingency financing plan to purchase the stake of the SP group.
But despite these distractions, Jhunjhunwala is optimistic about the group’s prospects. He has been a prominent investor in Titan and Rallis India group companies and has also been buying shares in other group companies such as Tata Communications and Indian Hotels. “The emphasis on cash flow management at Tata Group is greater now. Tata Group companies are now focusing on cash flows. Investors will be amazed at Tata Group’s returns over the next 5 years,” he said .
In a previous interview with ET NOW, Jhunjhunwala said that he was very happy with the president of Tata Sons, N Chandrasekaran. “In reality, it is consolidating the group, providing efficiency in cash flow, demanding performance, rewarding performance; I think you are taking all the right political measures. I am very very happy.”
