Shapoorji Pallonji Group seeks up to $2.4 bn from lenders to refinance debt

By Saikat Das

Shapoorji Pallonji Group is in talks with lenders including state-run Power Finance Corp., seeking to raise as much as Rs 20,000 crore ($2.4 billion), according to people familiar with the matter.

The group, controlled by Indian billionaire Shapoor Mistry, has reached out to Power Finance for up to Rs 15,000 crore, the largest chunk in the planned fundraising, the people said, asking not be identified because the details are private. Negotiations are ongoing and details of the lending could change, they added.

It’s also gauging interest from Davidson Kempner Capital Management and Cerberus Capital Management LP, the people said.

The proceeds from the lending, which would likely be a privately placed rupee-bond, will be partly used to refinance debt taken about three years ago by SP Group’s main investment vehicle Sterling Investment Corp. against shares in Tata Sons, the holding company of India’s diversified conglomerate Tata Group, the people said. Sterling owns a 9.1 per cent stake in Tata Sons, according to a note by rating company CareEdge.

Shapoorji Pallonji Group didn’t immediately offer comments when reached by Bloomberg News regarding the fund-raising plan. Davidson Kempner declined to comment. Cerberus and Power Finance didn’t respond to requests for comment.

Last year, Goswami Infratech Pvt., another SP Group company, raised Rs 14,300 crore in India’s biggest low-rated local currency bond.