Tata-linked SP Group narrowly avoids loan default, gets 4-month reprieve

• Shapoorji Pallonji Group, a major stakeholder in Tata Sons, secured a $3.4 billion loan against TCS shares.
• A decline in TCS share value pushed the Loan-to-Value (LTV) ratio close to breaching the 34% limit, risking default.
• Creditors granted a 4-month moratorium until July 15 and increased the LTV limit to 40%.
• This temporary relief prevents immediate repayment demands despite further potential drops in TCS share value.
• The group holds over 18% stake in Tata Sons, second only to Tata Trust.