Shapoorji Pallonji Group Seeks 2.4 Billion from Lenders

The Shapoorji Pallonji Group, owned by Indian tycoon Shapoor Mistry, is currently in the process of securing a significant amount of £2.4 billion from various lenders. Sources familiar with the matter have revealed that the group has approached Power Finance for a loan of up to 150 billion rupees, which forms the largest portion of their fundraising plan. These sources have requested to remain anonymous due to the confidential nature of the details. It is important to note that negotiations are still ongoing, and the terms of the lending could potentially change in the near future.

In addition to Power Finance, the group is also considering the possibility of obtaining funds from Davidson Kempner Capital Management and Cerberus Capital Management LP. The group is seeking a privately placed rupee-bond, and the proceeds from this lending initiative will be used in part to refinance debt that was incurred approximately three years ago by SP Group’s primary investment vehicle, Sterling Investment Corp. The debt was secured against shares in Tata Sons, the holding company of India’s well-diversified conglomerate, Tata Group. According to the rating agency CareEdge, Sterling holds a 9.1% stake in Tata Sons.

When approached for comments regarding their fundraising plan, the Shapoorji Pallonji Group declined to provide an immediate response. Similarly, Davidson Kempner opted not to comment, while there was no response from Cerberus and Power Finance to requests for comment on the matter.

It is worth noting that last year, another SP Group entity, Goswami Infratech Pvt., successfully raised 143 billion rupees in what turned out to be India’s most significant low-rated local currency bond. The group is making significant strides in the financial landscape to secure the necessary funding for its operations and future endeavors.

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In conclusion, it is evident that the Shapoorji Pallonji Group is proactively seeking substantial funding to support its business activities, and the response from lenders will be of keen interest to industry observers. This move is part of the group’s ongoing efforts to raise capital and strategically manage its financial position.