Tatas may have to reduce equity in TCS, pledge equity in listed cos or allow outside investor

New Delhi, Sep 23 With the SP Groups exit, the Tata group will no longer remain the same and will be compelled to reduce its equity holding in TCS, pledge equity of its listed companies against debt or allow an outside investor in Tata Sons.

Corporate governance firm, IIAS said that providing an exit to the Shapoorji Pallonji Group will compel the Tata Group to reduce its equity holding in TCS, pledge equity of its listed companies against debt, or allow an outside investor in Tata Sons.

"Any of these options will reduce Tata Sons' financial flexibility, heightening the performance pressures of the group. With the SP Group's exit, the Tata group will no longer resemble its past", it said.

With the SP Group severing relationship with the Tatas, Tata Sons needs to buy out the SP Group's 18.37 per cent, which is conservatively valued at $20 billion

( With inputs from IANS )