Shapoorji Pallonji to raise Rs 3,655 cr, plans clean slate by FY22
Real Estate

Shapoorji Pallonji to raise Rs 3,655 cr, plans clean slate by FY22

Shapoorji Pallonji Group (SP Group) plans to raise about Rs 3,655 crore by a combination of equity and debt, involving stake sale in certain firms, to become net-debt free by March next year.

The immediate plan is to sell a stake in Mumbai-based construction and engineering firm Afcons Infrastructure and land parcel in Karnataka. Following the paring of stake in these firms, SP Group would raise debt for the outstanding amount.

Further, internal accruals would additionally contribute to the kitty as the group anticipates funds to flow in from its core business of construction and real estate.

The aim is to become debt-free and commence the next financial year on a clean slate. With a growth in the country’s economy, which is leading to an increase in overall businesses, and the debt now decreased to manageable levels, this should not be a problem.

Afcons Infrastructure is a closely held firm, with a presence in general civil engineering works, road construction, offshore oil and gas among others. The group owns the land parcel through its textile arm in Karnataka. But, the quantum of the land parcel could not be instantly determined.

The 156-year-old business conglomerate had a net debt of Rs 10,900 crore as of September, which was decreased to Rs 6,500 crore following a stake sale in its consumer-durable company Eureka Forbes.

The group had raised Rs 4,400 crore from the stake sale after it deposited a 72.56% share to the American private equity fund Advent International.

Eureka Forbes, a wholly-owned subsidiary of SP Group company Forbes & Company, has a presence in vacuum cleaning, water purification and health and safety solutions space.

Later in October, the group raised another Rs 2,845 crore by selling a 40% stake in Sterling & Wilson Solar (SWSL) to Reliance New Energy Solar Limited, a wholly-owned subsidiary of billionaire Mukesh Ambani-owned Reliance Industries Limited. The complete stake in Eureka Forbes and SWSL was sold by the promoters and the funding would be utilised to pare debt. Following this, the group’s debt reaches around Rs 3,655 crore.

Image Source

Also read: Shapoorji Pallonji's Joyville sold properties worth Rs 1,100 cr in FY21

Shapoorji Pallonji Group (SP Group) plans to raise about Rs 3,655 crore by a combination of equity and debt, involving stake sale in certain firms, to become net-debt free by March next year. The immediate plan is to sell a stake in Mumbai-based construction and engineering firm Afcons Infrastructure and land parcel in Karnataka. Following the paring of stake in these firms, SP Group would raise debt for the outstanding amount. Further, internal accruals would additionally contribute to the kitty as the group anticipates funds to flow in from its core business of construction and real estate. The aim is to become debt-free and commence the next financial year on a clean slate. With a growth in the country’s economy, which is leading to an increase in overall businesses, and the debt now decreased to manageable levels, this should not be a problem. Afcons Infrastructure is a closely held firm, with a presence in general civil engineering works, road construction, offshore oil and gas among others. The group owns the land parcel through its textile arm in Karnataka. But, the quantum of the land parcel could not be instantly determined. The 156-year-old business conglomerate had a net debt of Rs 10,900 crore as of September, which was decreased to Rs 6,500 crore following a stake sale in its consumer-durable company Eureka Forbes. The group had raised Rs 4,400 crore from the stake sale after it deposited a 72.56% share to the American private equity fund Advent International. Eureka Forbes, a wholly-owned subsidiary of SP Group company Forbes & Company, has a presence in vacuum cleaning, water purification and health and safety solutions space. Later in October, the group raised another Rs 2,845 crore by selling a 40% stake in Sterling & Wilson Solar (SWSL) to Reliance New Energy Solar Limited, a wholly-owned subsidiary of billionaire Mukesh Ambani-owned Reliance Industries Limited. The complete stake in Eureka Forbes and SWSL was sold by the promoters and the funding would be utilised to pare debt. Following this, the group’s debt reaches around Rs 3,655 crore. Image Source Also read: Shapoorji Pallonji's Joyville sold properties worth Rs 1,100 cr in FY21

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