Shares of Sterling & Wilson Solar surged nearly 20 per cent on Wednesday after Shapoorji Pallonji Group announced that it will end its ties with Tata Sons.
In a late evening statement, the SP Group announced its separation from Tata Sons. “The Shapoorji Pallonji-Tata relationship spanning over 70 years, was forged on mutual trust, good faith, and friendship,” the group said.
“It is with a heavy heart that the Mistry family believes that a separation of interests would best serve all stakeholder groups,” Shapoorji Pallonji Group added.
The announcement came after Tata Sons earlier in the day told the Supreme Court that it was ready to buy the Mistry family’s stake in Tata Sons at current market value.
At 2.37 pm, Sterling & Wilson shares on the BSE were trading at Rs 235.90, higher by Rs 39.30 or 19.99 per cent from its previous close.
Earlier in the day, it rose 19.99 per cent to its intra-day high of Rs 235.90 per share.
The Mistry family-owned SP Group is the largest minority shareholder in Tata Sons, owning 18.37 per cent stake. On a market capitalisation basis, the SP Group’s stake is worth around Rs 2 lakh crore as per the March 2019 figures.
Shares of Forbes & Company, another SP Group company, also surged post the announcement and touched the 5 per cent upper circuit.
The share was trading at Rs 1,484.15 on the BSE, higher by Rs 70.65 or 5.00 per cent from its previous close.
The cash-strapped Shapoorji Pallonji group has been looking to raise funds by pledging its stake in Tata Sons to repay its debt, but the move was blocked by the Tata Group.
Now, investors are hopeful that the stake sale would help the group resolve its debt issue.