Shapoorji Pallonji Group is facing an exit from the family-controlled conglomerate, with its Rs 25,000 crore exit plan set to be discussed at the November 26 board meeting of Tata Sons.

Noel Tata, the great-grandson of Tata Group founder Jamsetji Tata, has asked the company’s board to scrutinize Shapoorji Pallonji Group’s proposal through a capital reduction. This would involve reducing the stake of the family-owned entity in Tata Sons from 18.5% to 1%.

Separately, Noel Tata has also sought approval for the restructuring plan of Tata Trusts, which is aimed at preserving the holding company’s unlisted status.

The Shapoorji Pallonji Group had proposed a capital reduction and a deal with its lenders to exit the family-controlled conglomerate. However, the group’s managing director, Pirojsha Doshi, has expressed concerns over the terms of the proposal.

Tata Sons is facing challenges due to the debt crisis of its subsidiaries, including Tata Steel and Tata Motors. The company has also been grappling with the exit of Shapoorji Pallonji Group from its business operations.

Noel Tata’s push for restructuring comes at a time when the group is facing challenges from regulatory bodies. The Securities and Exchange Board of India (SEBI) had issued a warning to Tata Sons over the company’s exposure to Shapoorji Pallonji Group.

The November 26 board meeting will also discuss other proposals, including the sale of Tata Steel’s Bhilai steel plant in Chhattisgarh. However, the fate of this proposal remains uncertain due to regulatory hurdles.

Shapoorji Pallonji Group has been a significant stakeholder in Tata Sons for decades. The group has controlled 18.5% of the company’s shares, but its stake is set to be reduced to 1% through the proposed capital reduction.

The exit plan of Shapoorji Pallonji Group comes at a time when the group is facing financial difficulties. The company has been struggling with debt repayments and has defaulted on several loans in the past.

Noel Tata’s move suggests that he is keen to protect the interests of Tata Sons. However, the future of Shapoorji Pallonji Group’s exit plan remains uncertain due to regulatory hurdles.

The November 26 board meeting will be crucial in determining the fate of these proposals. The outcome of this meeting will have a significant impact on the future of Tata Sons and its stakeholders.