Controversy with Tata: About $ 29 billion is stuck, how will Shapoor Mistry overcome this third ‘tragedy’? – न्यूज़लीड India

Controversy with Tata: About $ 29 billion is stuck, how will Shapoor Mistry overcome this third ‘tragedy’?


SP Group’s $ 29 billion is stuck – report

According to a Bloomberg report, Shapoorji Pallonji Group (SP Group) has about $29 billion stuck due to its ongoing dispute with the Tata Group. For Shapoor Mistry, this is no less than the third tragedy of the year. Within three months, first the father left and then the younger brother Cyrus Misri died a painful death in a road accident. These tragedies have put the SP Group, one of the richest business houses in the world, in deep trouble. Over 157 years, five generations of the House of Egypt built an empire of buildings, factories and stadiums across Asia. But roughly 90% of the group’s estimated $29 billion is tied up in its ongoing dispute with India’s Tata Group, according to estimates from the Bloomberg Billionaires Index.

The two families maintained cordial relations for a century.

The two families maintained cordial relations for a century.

Cyrus Mistry’s elder brother Shapoor Mistry, 57, needed the cash to tide over a weak economy and rising interest rates. Business is under the same pressure as it has been in the last few years due to the pandemic. According to the information, he has also met lawyers and consultants to find a middle ground. The fact is that both Misri and Tata are from the Parsi community, both are big business families and the relations between the two houses were very cordial for almost a century before differences arose.

Misri family holds 18% stake in Tata Group – report

Misri family holds 18% stake in Tata Group – report

Most of the Mistry family’s net worth is their 18% stake in Tata Sons, the $128 billion conglomerate that owns brands such as Jaguar Land Rover. Due to the ongoing dispute with Tata, Misri is not even in a position to sell his stake in this company, which has created a very difficult situation in front of him. Alam is that some knowledgeable people are expecting some senior people of Parsi society to come forward to resolve the dispute between the two big business houses. However, representatives of Shapoor Misri declined to comment.

The name of Mistry Group is associated with the construction of some prestigious buildings.

The name of Mistry Group is associated with the construction of some prestigious buildings.

Shapoorji Pallonji Group was started in 1865 as a construction company. The company later expanded into water, energy and financial services. In June this year, Pallonji Misri, father of Shapoor Misri and his younger brother Cyrus Misri, had passed away. Prior to Shapoor Misri, the company was controlled by his father. Some of the most prestigious constructions to which the Shapoorji Pallonji Group name is attached include the Reserve Bank of India building in Mumbai and the tower wing of the Taj Mahal Palace Hotel in Mumbai itself.

How friendship turned into business hatred?

How friendship turned into business hatred?

The ancestors of both the Misri and Tata families immigrated to India centuries ago due to religious persecution in what is now Iran. From 1927, apart from religious relations, financial relations also started to be established between the two families. The Shapoorji Pallonji Group helped build some of the Tata Group’s automobile factories and steel plants, and the Mistry family’s stake increased, reaching 18%, by buying shares from family members of Tata Sons. Relations between the two families reached an all-time high when Cyrus Mistry succeeded Ratan Tata as chairman of Tata Sons in 2012. But, the wheel of time turned from here in such a way that this business and family friendship of almost a hundred years became the cause of deep differences.

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Why is the dispute between Mistry and Tata Group not getting resolved?

Why is the dispute between Mistry and Tata Group not getting resolved?

Tata Group’s dispute with Cyrus Mistry escalated so much that he finally had to step down. The matter also reached the court, in which the Tata Group won in the end. In 2017, Tata Sons changed the company’s status and became a private company, making it difficult for the Mistry family to sell their shares to other investors. Tata Sons had also offered to buy its shares to the Misri Group, but the matter regarding valuation got stuck there. SP Group also paid $1.5 billion to lenders this year and came out of its difficult financial situation to a large extent. But, rising interest rates and the sound of global recession have created new challenges in front of it. (Photos-File)

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