Shapoorji Pallonji may sell stake in three companies

10 Mar 2021 CW Staff

SP Group plans to raise about Rs 10,332 crore through this asset sale. Additionally, Inter Corporate Deposits (ICDs) given to the SP Group companies are also likely to be realised, primarily from its real estate joint venture, SD Corp, and other entities forming part of Shapoorji Pallonji and Company Private Ltd's real estate portfolio through monetisation of their project assets.

Last year in September, the company had sought relief to restructure its Rs 10,900 crore debt under the resolution framework for Covid-19 pandemic related stress announced by the Reserve Bank of India (RBI). Sources told the media that the SP Group is in talks with the lenders and likely to finalise the resolution package soon.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

Proceeds from the proposed monetisation of assets will be used for the prepayment of loans.

Proceeds from ICDs aggregating to about Rs 836 crore are also expected to be used for the prepayment of the debt, and any balance amount would be used for company operations.

As a part of the one time restructuring, promoter debt of Rs 2,724 crore as of the end of 2019-20 is also proposed to be converted to perpetual debt.

For prepayment of outstanding debt, expected recoveries from claims so far not recognised by the company in the books of about Rs 700 crore are also proposed to be used.

As part of the resolution plan, no concession in the rate of interest has been proposed. A haircut is also unlikely in the principal repayment.

There will also be no pooling of security, and the security of each lender will continue with it exclusively. An interest moratorium up to 30 September 2021, is also likely. The unpaid interest for the moratorium period up to 31 August 2020, and interest till 30 September 2021, on all fund based facilities may be converted to a funded interest term loan.

Image Source

Also read: Shapoorji Pallonji Infra to sell 317 MWp of operational solar assets to KKR

Also read: Understanding the asset monetisation push

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Shapoorji Pallonji (SP) Group is looking to monetise its assets and may sell its stake partly or fully in at least three of its group companies, including Sterling, Eureka Forbes, Afcons Infrastructure, and Wilson Solar, as a part of the one time debt restructuring package being discussed with the lenders. SP Group plans to raise about Rs 10,332 crore through this asset sale. Additionally, Inter Corporate Deposits (ICDs) given to the SP Group companies are also likely to be realised, primarily from its real estate joint venture, SD Corp, and other entities forming part of Shapoorji Pallonji and Company Private Ltd's real estate portfolio through monetisation of their project assets. Last year in September, the company had sought relief to restructure its Rs 10,900 crore debt under the resolution framework for Covid-19 pandemic related stress announced by the Reserve Bank of India (RBI). Sources told the media that the SP Group is in talks with the lenders and likely to finalise the resolution package soon.4th Indian Cement Review Conference 202117-18 March Click for event info Proceeds from the proposed monetisation of assets will be used for the prepayment of loans. Proceeds from ICDs aggregating to about Rs 836 crore are also expected to be used for the prepayment of the debt, and any balance amount would be used for company operations. As a part of the one time restructuring, promoter debt of Rs 2,724 crore as of the end of 2019-20 is also proposed to be converted to perpetual debt. For prepayment of outstanding debt, expected recoveries from claims so far not recognised by the company in the books of about Rs 700 crore are also proposed to be used. As part of the resolution plan, no concession in the rate of interest has been proposed. A haircut is also unlikely in the principal repayment. There will also be no pooling of security, and the security of each lender will continue with it exclusively. An interest moratorium up to 30 September 2021, is also likely. The unpaid interest for the moratorium period up to 31 August 2020, and interest till 30 September 2021, on all fund based facilities may be converted to a funded interest term loan. Image Source Also read: Shapoorji Pallonji Infra to sell 317 MWp of operational solar assets to KKR Also read: Understanding the asset monetisation push

Infrastructure Energy

25 Jun 2026

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

Infrastructure Urban

25 Jun 2026

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..

Infrastructure Energy

25 Jun 2026

BCCL Hands Over Dugdha Coal Washery To JSW Steel

Bharat Coking Coal has handed over the Dugdha Coal Washery to JSW Steel, marking the first coal washery asset monetisation under the Ministry of Coal's asset monetisation programme. The handover took place in the presence of senior officials from Bharat Coking Coal Ltd, JSW Steel and JSW Energy. The washery has a capacity of two million tonnes per annum (mn t per annum), and its transfer is intended to introduce private sector practices into coal beneficiation operations. The monetisation is aimed at modernising coal sector assets, improving operational efficiency and enhancing resource utilis..