MUMBAI: Shapoorji Pallonji Group companies, Sterling & Wilson Solar Ltd and Forbes & Co Ltd surged on Wednesday after the group unexpectedly said it will end its seven-decade association with the Tata group.
Sterling & Wilson Solar shares reached 20% of the upper circuit, its biggest single-day gains since August 2019, while Forbes & Co Ltd reached 5% of the upper circuit.
The Shapoorji Pallonji group’s decision came shortly after the Tata group told the Supreme Court on Tuesday that it was ready to buy the Mistry family’s stake in Tata Sons at current market value.
As of June 30, the Shapoorji Pallonji group owns a 50.6% stake in Sterling & Wilson and a 72.6% stake in Forbes.
The cash-strapped Shapoorji Pallonji group has been looking to raise funds by pledging its stake in Tata Sons, which is estimated in value. ₹1.5 trillion, to pay the debt, but the measure was blocked by the Tata group, which feared that the stake would fall into the hands of hostile investors who could threaten their control over the group’s companies, according to the Mint report.
The sale of a stake is likely to solve the current financial problems of the Shapoorji Pallonji group, adds the Mint report.
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