Global Investor Consortium Set to Inject ₹2,100 Crore into Shapoorji Pallonji Group Amid Strategic Deleveraging

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The Shapoorji Pallonji Group is poised to receive a substantial investment of over ₹2,100 crore from a consortium of global investors led by Deutsche Bank, as confirmed by insider sources. This influx of capital is part of the group’s ongoing strategy to strengthen its financial footing while preparing for significant liquidity events.

The consortium comprises existing investors from the group’s investment arm, Goswami Infratech, which also holds a stake in Afcons Infrastructure—a company gearing up for a ₹7,000 crore IPO scheduled for early next month. This investment will initially be funneled into debentures, further solidifying the group’s financial stability.

In addition to the incoming funds, the SP Group has requested an extension for the payment of non-convertible debentures amounting to ₹2,100 crore, which are set to mature this September. The group is seeking to extend these payments until December 2023, aligning with its broader financial restructuring efforts.

The SP Group has been strategically pursuing a deleveraging strategy, aiming to reduce its debt through the selective monetization of its assets. Recent actions include the sale of Eureka Forbes for an enterprise value of ₹4,400 crore and divesting a 40% stake in Sterling & Wilson Renewable Energy. Additionally, the group has completed the sale of its entire stake in SP Jammu Udhampur Highway Ltd to the National Investment and Infrastructure Fund (NIIF) for ₹2,100 crore.

In a recent development, the group’s agreement with Adani Ports for the sale of its port at Gopalpur, Odisha, has received approval from the state government. This transaction will see Adani Ports acquiring a 56% stake in Gopalpur Port Limited for ₹3,080 crore, marking a significant shift in the group’s asset portfolio.

As the SP Group continues to navigate its financial landscape, the support from esteemed global investors reflects confidence in its ability to rebound and embark on a new phase of growth. A spokesperson for the group emphasized their commitment to honoring obligations to lender partners while strategically positioning the company for future successes.

This investment is expected to play a crucial role in the group’s efforts to manage nearly ₹8,000 crore in repayments, with funds anticipated from the upcoming IPO and asset sales. The SP Group’s proactive approach to financial management demonstrates its dedication to sustainable growth and resilience in a competitive market.

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