Shapoorji to raise $1.3 billion from realty, oil business

Shapoorji Pallonji (SP) Group, the Mumbai-headquartered real estate and infrastructure conglomerate run by billionaire Shapoor Mistry, is planning to raise $1.3 billion (about ₹11,500 crore) over the next two years by taking its real estate business public, and by selling some assets in its oil & gas businesses.

- Gopika Gopakumar

MUMBAI:

The move is part of a bigger plan to manage the group's rising debt.

The money raised will be used to make interim payments to creditors of a recent $3.3 billion private credit loan that the group took last week, according to the deal's term sheet. That loan, in turn, was taken to refinance and repay some other, older loans.

SP Group has total outstanding debt of ₹55,000-₹60,000 crore as of 31 March 2024, according to news reports.

Nearly ₹32,000 crore has reportedly been raised from global private credit funds as well as wealthy high net-worth individuals (HNIs) over the past three years in two tranches via non-convertible debentures (NCDs).