Shapoorji Pallonji Group, led by Indian billionaire Shapoor Mistry, is currently in discussions with lenders, including state-run Power Finance Corp., aiming to raise up to 200 billion rupees ($2.4 billion), as per individuals familiar with the situation.
The group has reportedly approached Power Finance for a potential funding of up to 150 billion rupees, constituting the largest portion of the planned fundraising. Negotiations are underway, and the terms of the lending could be subject to change, according to the sources who preferred to remain anonymous due to the confidential nature of the details.
Additionally, the group is assessing interest from investment firms such as Davidson Kempner Capital Management and Cerberus Capital Management LP.
The proceeds from this fundraising, which is likely to be structured as a privately placed rupee bond, will be utilized partly to refinance debt acquired approximately three years ago by SP Group’s primary investment entity, Sterling Investment Corp. This debt was secured against shares in Tata Sons, the holding company of India’s diversified conglomerate Tata Group. Sterling currently holds a 9.1% stake in Tata Sons, as per a note by rating agency CareEdge.
Shapoorji Pallonji Group did not provide immediate comments when approached by Bloomberg News regarding the fundraising initiative. Davidson Kempner declined to comment, while Cerberus and Power Finance did not respond to requests for comment.
Last year, Goswami Infratech Pvt., another company under the SP Group, raised 143 billion rupees in what was India’s largest low-rated local currency bond issuance.
