In Short:
Shapoorji Pallonji Group is looking to raise $2.4 billion from lenders like Power Finance Corp. for refinancing debt taken against shares in Tata Sons. The group is also exploring interest from other investors. The fundraising plan involves a privately placed rupee-bond. Last year, another SP Group company raised a significant amount through a local currency bond. Livemint has been recognized as the fastest growing news website globally.
Shapoorji Pallonji Group Eyes $2.4 Billion Fundraising
The Shapoorji Pallonji Group is currently in discussions with lenders, including state-run Power Finance Corp., to potentially raise up to 200 billion rupees ($2.4 billion), as per sources familiar with the matter who spoke to Bloomberg.
Seeking Financial Support
Headed by Indian billionaire Shapoor Mistry, the group has reportedly approached Power Finance for a significant portion of the funds, up to 150 billion rupees. Negotiations are still in progress and the specifics of the deal may evolve over time, the sources revealed.
Exploring Options
Besides Power Finance, the Shapoorji Pallonji Group is also exploring interest from Davidson Kempner Capital Management and Cerberus Capital Management LP for the fundraising endeavor.
Utilization of Funds
The intended use of the proceeds from this fundraising initiative, likely in the form of a privately placed rupee-bond, includes refinancing debt incurred approximately three years ago by SP Group’s main investment entity, Sterling Investment Corp. This debt was secured against shares in Tata Sons, the holding company of India’s prominent conglomerate, the Tata Group. Notably, Sterling currently holds a 9.1% stake in Tata Sons, according to ratings company CareEdge.
Response and Previous Success
While Shapoorji Pallonji Group refrained from immediate comments to Bloomberg News regarding this development, Davidson Kempner opted not to comment. Cerberus and Power Finance have not yet responded to requests for statements.
Last year, Goswami Infratech Pvt., another company under the SP Group umbrella, raised 143 billion rupees through India’s largest low-rated local currency bond issuance.
