Tata Sons’ new Chairman N Chandrasekaran could soon embark on a restructuring exercise to simplify the group’s shareholding. Under this plan, Tata Sons will buy out shares held by group companies in other group entities. The buyout is estimated to cost around ₹8,000-10,000 crore, according to an industry source.

While a Tata spokesperson declined to comment, sources close to the group said that the restructuring was part of a move to address areas of concern arising out of the rift with ousted Chairman Cyrus Mistry.

If this proposal is executed, some of the listed entities, including Tata Steel, Tata Motors and Tata Chemicals, will receive money from Tata Sons, which could be used to pare debt.

Tata Steel, for example, holds stakes worth over ₹16,000 crore in 13 other listed Tata entities, including Tata Power, Tata Motors, Tata Consultancy Services, Tata Sponge Iron and Titan. Under the restructuring plan, Tata Sons will hold shares in these companies directly, and not through Tata Steel.

Earlier, Nusli Wadia, then an independent director on the boards of Tata group firms, had said the cross-holding structure locked up value for companies like Tata Motors. Wadia had told shareholders that Tata Motors should sell its stake in other Tata companies, valued at about ₹8,800 crore.

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