Shapoor Mistry lone representative on boards of family investments firms

Both firms own 18.4% stake in Tata Sons

Shapoor Mistry, head of billionaire Mistry family, is the lone representative on the boards of the two family investments firms, which jointly hold 18.4 per cent stake in Tata Sons Private — the holding company of the Tata group. The former chairman of Tata group, late Cyrus Mistry, was representing the family of the investment firms — Cyrus Investments and Sterling, along with Shapoor earlier.

The two sons of Cyrus have not been inducted into the boards as yet, but have joined the businesses, said a source close to the development.  Both brothers hold equal stake in all the Mistry family promoter entities holding Tata Sons shares thus giving the family substantial wealth worth $29 billion estimated by Bloomberg.

An email to the Mistry family did not elicit any response.

With Shapoor, 57, firmly in control of the group, insiders said it would be easier for him to bury the hatchet with the Tata group. The Tata Trusts, currently headed by Tata group patriarch Ratan Tata, holds 66 per cent stake in Tata Sons. The Mistry family and Tata fought a bitter legal battle after Cyrus was removed as the chairman of Tata group. In 2021, the Supreme Court held the removal of Mistry by Tata Sons as legal.

During the recent financial crisis faced by the Pallonji group, the family had to sell their stake in the renewable power firm Sterling & Wilson Solar to Reliance Industries and Eureka Forbes to pay bank loans. Almost 90 per cent of Mistry family wealth is locked up in Tata Sons, a private company. The promoters also raised funds by pledging stake in the two investment companies holding shares in Tata Sons Private.

Under Shapoor, the group is also looking to reduce its debt further. Family flagship, Shapoorji Pallonji & Company Private’s total borrowings was Rs 3,667 crore, including Rs 3,300 crore of term loan and remaining working capital borrowings as on August 31, 2022, according to a CARE Ratings statement. The company is planning to pursue divestment options to reduce the overall debt at the group level.