According to a Business Headline, the Shapoorji Pallonji Group is requesting regulatory and other stakeholder clearances for a significant restructure that will form two holding companies in charge of operations ranging from oil & gas to real estate and construction.
According to the article, which cited unnamed sources, the two holding entities S.P. Finance and S.C. Finance will each own a 47.69% share in Shapoorji Pallonji Co. Pvt. Ltd. After the restructuring, Shapoorji Pallonji Co. Pvt. Ltd would no longer exist.
Four members of the Mistry family will serve on the advisory board that will oversee these holding companies: Shapoor, his son Pallon, and the late Cyrus Mistry’s two children, Firoz and Zahan. The goal is to clearly define the duties of the management and the promoters in their capacity as custodians.
“There won’t be any cross-holdings in any vertical. Each cluster controls its own course and will answer directly to shareholders. The families will have a more ownership-focused role than manager-focused one, according to one of the sources cited in the study.
According to one of the sources in the report, the two brothers Shapoor and Cyrus conceptualised the framework and underwent extensive conversations.
In September of last year, Cyrus perished in an automobile accident. And by the end of September, the approvals for the reorganization plans are anticipated.