Shapoorji Pallonji may sell stake in three companies
Real Estate

Shapoorji Pallonji may sell stake in three companies

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 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

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

Next Story
Real Estate

CREDAI-MCHI to Host 10th Design & Construction Conference

CREDAI-MCHI will host the 10th anniversary edition of its Design & Construction Conference on August 19, 2026, at the Jio World Convention Centre in Mumbai.The event is expected to bring together more than 500 procurement leaders, construction heads, architects, consultants and senior real estate decision-makers, alongside over 50 construction and ancillary brands.The conference will feature product launches, technology showcases, knowledge sessions, strategic business-to-business networking and recognition of procurement professionals contributing to the transformation of the construction..

Next Story
Infrastructure Energy

BorgWarner Wins Extension for High-Voltage Inverter Programmes

BorgWarner has secured a major extension of several high-volume high-voltage inverter programmes from a leading European automotive manufacturer.The contracts cover updated inverter designs for plug-in hybrid and 800V battery-electric vehicle applications. Production is scheduled to begin in 2029.Isabelle McKenzie, President and General Manager, BorgWarner PowerDrive Systems, said the programme extensions demonstrate the company’s position in power electronics and reflect the strength of its technology, in-house expertise and customer relationships.For plug-in hybrid vehicles, BorgWarner wil..

Next Story
Infrastructure Urban

Castrol India Q2 Profit Rises 43% to Rs 3.48 bn

Castrol India reported a 43 per cent year-on-year increase in profit after tax to Rs 3.48 billion for the quarter ended June 30, 2026, supported by growth across its consumer, industrial and institutional businesses.Revenue from operations increased 25 per cent to Rs 18.71 billion during the second quarter of 2026, compared with Rs 14.97 billion in the corresponding period of 2025. EBITDA rose 41 per cent to Rs 4.94 billion from Rs 3.50 billion.Sequentially, revenue increased from Rs 15.45 billion in the first quarter of 2026, while EBITDA rose from Rs 3.29 billion. Profit after tax increased ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement