SP Group to merge port subsidiaries amid refinancing delays
PORTS & SHIPPING

SP Group to merge port subsidiaries amid refinancing delays

The Shapoorji Pallonji (SP) Group is reportedly considering the merger of its two port-holding companies, SP Imperial Star and SP Port Maintenance, which oversee Dharamtar and Gopalpur Ports, respectively. Dharamtar has already been sold to JSW, while Gopalpur is in the process of being sold to Adani. The proposed merger is expected to be carried out through a scheme under the Company Law Tribunal (CLT), and the process may take several months to finalize.

In the meantime, Axis Trustees Services, acting as Debenture Trustee for the non-convertible debentures (NCDs) worth Rs 143 billion issued by Goswami Infratech, informed debenture holders that Goswami Infratech had received in-principle approval from the BSE on September 30, related to a Most Favoured Nation (MFN) trigger event.

Goswami Infratech (GIPL), a unit of the SP Group, has secured an extension for an important early redemption payment tied to its NCDs. The deadline for this redemption, linked to the MFN event, has been extended from September 30 to December 31, 2024, as the group works on refinancing its debt at the promoter level through Sterling Investment Corporation (SICPL). In light of delays in fundraising and heightened refinancing risks, CARE Ratings downgraded GIPL's debt last month from Care BB to Care BB- with a negative outlook. In June 2023, GIPL raised Rs 143 billion through a high-yield bond with a coupon rate of 18.75 per cent. The payment on this bond, initially due in June, was postponed, with the SP Group committing to an additional Rs 4 billion in payments.

The SP Group aims to reduce its debt through asset sales, including the sale of Gopalpur Port and the initial public offering (IPO) of Afcons Infrastructure. However, delays in these monetization events have led to a 400-basis-point increase in the coupon rate. The bond, originally issued at 18.75 per cent, now carries an interest rate of 22.75 per cent. Afcons has received approval from SEBI for an Rs 84 billion IPO, which could take place anytime this month. Additionally, Gopalpur Port has received clearance from the state government for its sale to Adani, and the group anticipates generating Rs 8.50 billion from the transaction.

The Shapoorji Pallonji (SP) Group is reportedly considering the merger of its two port-holding companies, SP Imperial Star and SP Port Maintenance, which oversee Dharamtar and Gopalpur Ports, respectively. Dharamtar has already been sold to JSW, while Gopalpur is in the process of being sold to Adani. The proposed merger is expected to be carried out through a scheme under the Company Law Tribunal (CLT), and the process may take several months to finalize. In the meantime, Axis Trustees Services, acting as Debenture Trustee for the non-convertible debentures (NCDs) worth Rs 143 billion issued by Goswami Infratech, informed debenture holders that Goswami Infratech had received in-principle approval from the BSE on September 30, related to a Most Favoured Nation (MFN) trigger event. Goswami Infratech (GIPL), a unit of the SP Group, has secured an extension for an important early redemption payment tied to its NCDs. The deadline for this redemption, linked to the MFN event, has been extended from September 30 to December 31, 2024, as the group works on refinancing its debt at the promoter level through Sterling Investment Corporation (SICPL). In light of delays in fundraising and heightened refinancing risks, CARE Ratings downgraded GIPL's debt last month from Care BB to Care BB- with a negative outlook. In June 2023, GIPL raised Rs 143 billion through a high-yield bond with a coupon rate of 18.75 per cent. The payment on this bond, initially due in June, was postponed, with the SP Group committing to an additional Rs 4 billion in payments. The SP Group aims to reduce its debt through asset sales, including the sale of Gopalpur Port and the initial public offering (IPO) of Afcons Infrastructure. However, delays in these monetization events have led to a 400-basis-point increase in the coupon rate. The bond, originally issued at 18.75 per cent, now carries an interest rate of 22.75 per cent. Afcons has received approval from SEBI for an Rs 84 billion IPO, which could take place anytime this month. Additionally, Gopalpur Port has received clearance from the state government for its sale to Adani, and the group anticipates generating Rs 8.50 billion from the transaction.

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