The Tatas and the Shapoorji Pallonji (SP) Group are exploring a separation via share swap, which will allow the Mistrys a gradual exit from its 18.4% stake in Tata Sons . Sources familiar with the developments said under the proposal, SP will surrender its Tata Sons stake either fully or partially in exchange for a basket of shares of some of the listed Tata Group companies.

It is being felt that a marginal stake reduction in a few of the companies where Tata Sons has massive stakes won’t have much of an impact on them. But it would give SP market-liquid equity instead of an illiquid, privately held stake in Tata Sons. SP can then sell those shares in the open market in tranches and take care of its burgeoning debt.

Though a similar proposal was made by SP in 2020 at the height of th

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