The Shapoorji Pallonji (SP) Group is looking to raise around $150 million to $200 million, according to sources, as the conglomerate faces mounting debt obligations, Bloomberg has reported.
SP Group plans to raise the funds through private credit by issuing more rupee bonds initially sold by its Eqyizen Investment unit in July, the sources said. About half of the proceeds will be used to repay creditors of Porteast Investment, another SP Group unit, they said.
The remainder will go toward other group debt, the sources said, adding that talks are at an early stage and the size and terms could change.
The fresh financing would help SP Group cut debt at Porteast and reduce pressure on its loan-to-value ratio.
SP Group has faced increasing strain as more debt comes due and it endures a prolonged wait to monetise its assets, including a large stake in Tata Sons, where executives are locked in a battle over whether or not to list publicly. The Mistry family, which controls SP Group, is the second-largest shareholder of Tata Sons with a roughly 18.4 per cent share.
SP Group’s latest fundraising plan comes after the company borrowed about ₹4,450 crore ($467 million) in September through Eqyizen and dollar bonds sold by another unit called Mercury Finance. That money was used for amortisation payments due at Porteast, they said. The group is seeking to complete its new financing by mid-November.