SP raises ₹14,300 cr via high-yield debt

Cerberus, Davidson Kempner, others buy SP Group's bonds

- Ranjani Raghavan

Shapoorji Pallonji Group has raised ₹14,300 crore from a clutch of private credit investors and high-net-worth individuals, pledging its shares in Tata Sons Ltd as collateral, primarily to refinance its debt, two people familiar with the development said.

The group raised funds from private credit investors, including Cerberus Management, Davidson Kempner, and Varde Partners, and foreign banks such as Deutsche Bank, Standard Chartered, and Nomura Holdings.

There was significant subscription from high-net-worth individuals too because of the attractive yield, one of the people cited above said, requesting anonymity.

"The book was more than covered," the person added.

The listed non-convertible debentures (NCDs) were raised fully in rupees and promised an enticing yield of 18.75%, presenting a very attractive but risky investment opportunity.