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Mumbai-based Shapoorji Pallonji (SP) Group is planning to raise USD 1.3 billion (around INR 10,500 crore) over the next two years by selling assets from its real estate and oil businesses. The funds will be used to repay debt and are part of a broader plan to restructure the group's balance sheet. The group recently raised INR 3.3 billion through India's largest private credit deal and plans to sell high-value commercial assets and two offshore oil units (FPSOs). Key investors such as Cerberus, Farallon, and BlackRock have shown interest in the offering, as the group looks to ease its high debt burden.
The Shapoorji Pallonji (SP) Group, one of India's oldest infrastructure and real estate conglomerates, has announced a plan to raise USD 1.3 billion (INR 10,500 crore) over the next two years. The group, headed by billionaire Shapoor Mistry, aims to reduce its debt by monetizing assets in its property and oil & gas segments. Advertisement
According to reports, SP Group will sell assets from Shapoorji Pallonji Real Estate, which is currently valued at around INR 55,000-INR 60,000 crore, and from its energy arm, SP Energy, which operates two FPSOs (floating production storage and offloading units). The oil units alone are expected to fetch around USD 800 million.
This capital-raising initiative follows a successful USD 3.3 billion private credit deal signed earlier this week, one of the largest in India's history. The deal was executed through a three-year zero-coupon bond under Sterling Investment Corp, the group's main investment vehicle. It carries an annualized yield of 19.75%, and will be used to refinance older loans taken around three years ago.
Shapoorji Pallonji is also preparing for two public listings to help unlock value and attract investors. One of them is for its real estate vertical, and another for its offshore oil assets. The group previously listed its construction arm, Afcons Infrastructure, in October 2024 through a bond issue worth INR 5,430 crore.
The company's total outstanding debt stood at INR 55,000-INR 60,000 crore as of March 2024. Of this, INR 32,000 crore is reported to have been refinanced through global private credit funds and wealthy individual investors over the past three years, via various structured debt instruments such as non-convertible debentures.
The latest offering has attracted strong interest from institutional investors. Key backers include Cerberus Capital Management, Farallon Capital, Davidson Kempner, BlackRock, and Edelweiss Alternatives, with many of them participating in both large and smaller tranches of the funding.
Industry experts view this as a strategic and necessary move for the SP Group to manage its complex debt profile while freeing up capital for core infrastructure and real estate expansion. The proceeds from the asset sales and bond issue will not only improve liquidity but may also pave the way for potential future equity infusions and public offerings.
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