SP Group exit likely to stretch Tata's finances for years to come

Tata Sons had liabilities of Rs 33,500 cr and debt-to-equity of 0.7x last year

Tata Sons may have won the legal battle against its former chairman Cyrus Mistry, but the financial cost of buying out SP Group stake could stretch the holding company’s finances for years to come. The total financial liabilities, including borrowings, of Tata Sons was around Rs 33,500 crore at the end of March last year. It had a debt-to-equity ratio of 0.7x. This makes Tata Sons one of the most indebted holding companies in the country.
 
The market value of Mistry’s 18.4 per cent stake in Tata Sons is pegged anywhere between Rs 80,000 crore and Rs 1.7 trillion.