Tata Trusts Proposes ₹25,000 Crore Liquidity Plan for SP Group Stake in Tata Sons

At the Board meeting of Tata Sons Private Limited ("Tata Sons") held today, Chairman, Tata Trusts, Mr. Noel N. Tata, tabled a proposal received from the Shapoorji Pallonji Group ("SP Group") regarding monetization of a portion of the Tata Sons shareholding held by Sterling Investments Corporation Private Limited ("SICPL") and Cyrus Investments Private Limited ("CIPL"). This was in the context of meetings and discussions held earlier between Mr. Noel N Tata, Mr. N. Chandrasekaran and Mr. Shapoor Mistry.

The transaction envisages a sale of such number of Tata Sons shares held by SICPL and CIPL as would, at a minimum valuation, as determined in accordance with Rule 11UA of the Income Tax Rules 1962, yield a gross consideration of Rs. 25,000 crores. It was also indicated that the following structure would be acceptable to the SP Group:

• The share buyout would be carried out in two tranches over an eighteen-month period;
• Tata Sons would initiate a selective capital reduction process through the NCLT;
• Valuation of Tata Shares would be done as per Income-tax fair value.

Mr. Noel N. Tata suggested that various avenues could be used for the purpose of raising the funds required for this purpose, including from internal cashflows; sale of listed shares; bringing in an investor into some of the newer businesses and listing, upon an offer for sale, of some of the businesses. He requested the Board to take the necessary steps for initiating the NCLT process and authorise the operating team of Tata Sons and the Tata Trusts to continue discussions with the SP Group, and the bankers, and report to the Board.

This is in continuation and reaffirmation of the Tata Trusts' desire to offer a fair and equitable solution to the SP Group in respect of their holdings in Tata Sons.

About Tata Trusts

Since its inception in 1892, Tata Trusts, India's oldest philanthropic organisation, have played a pioneering role in bringing about an enduring difference in the lives of the communities it serves. Guided by the principles and the vision of proactive philanthropy of the Founder, Jamsetji Tata, the Trusts' purpose is to catalyse development in the areas of health, nutrition, education, water, sanitation and hygiene, livelihood, digital transformation, migration and urban habitat, social justice and inclusion, environment and energy, skill development, sports and arts and culture. The Trusts' programmes,

achieved through direct implementation, partnerships and grant making, are marked by innovations relevant to the country.

For more information please visit: www.tatatrusts.org