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Shapoorji Pallonji seeks Rs35 billion extension as Tata Sons IPO uncertainty looms
The company is seeking an extension for a Rs35 billion payment due at end-October, while exploring ways to monetize its roughly 18% stake in Tata Sons.
Shapoorji Pallonji Group is seeking additional funding to meet a Rs35 billion debt payment as uncertainty persists around whether Tata Sons will pursue an IPO, Bloomberg reported.
The group, Tata Sons Pvt’s second-largest shareholder, is in talks with lenders to exercise a so-called greenshoe option on an existing ₹213.5 billion facility that would let it raise the extra ₹35 billion, with Deutsche Bank AG expected to provide most of the amount, according to people familiar with the matter cited by Bloomberg.
SP Group also asked to extend the due date of the ₹35 billion payment owed by its financing arm Porteast Investment by one month to the end of October, and it is likely to offer a slightly lower yield than its July borrowing because secondary market rates have improved, Bloomberg said.
The report added that SP Group could face repayment pressure until it unlocks value from its roughly 18% stake in Tata Sons. Porteast previously raised $3.4 billion through zero-coupon bonds, backed partly by SP Group’s stake, and is also seeking to extend a 40% loan-to-value limit that expires Sept. 30 by another six months, Bloomberg reported.