Shapoorji Eyes $1 Billion Debt Payment in Potential Tata Sons Stake Sale
Shapoorji Pallonji Group is planning to use proceeds from a potential sale of its 18.4% stake in Tata Sons to repay a significant portion of its debt. The group aims to settle the outstanding 88.1 billion rupees ($1 billion) in bonds issued by Goswami Infratech Pvt. and maturing in April next year.
Shapoorji Pallonji GroupTata SonsDebt RepaymentInfrastructure UnitGoswami InfratechReal EstateAug 12, 2025
Shapoorji is aiming to settle the outstanding 88.1 billion rupees ($1 billion) in bonds that were issued by Goswami Infratech Pvt. and mature in April next year. These people, who asked not to be identified due to the private nature of the matter, noted that a full or partial repayment of Goswami’s debt would assist investors in supporting the group’s other capital expenditure plans.
Talks are currently at an early stage, and the plans could still change. Shapoorji Group did not respond to Bloomberg’s email seeking comment, and Tata Sons declined to comment on the matter.
Last week, The Economic Times reported that Tata Sons had initiated discussions with Shapoorji to explore options for the shareholder to exit its stake in the company. This report came less than three months after Shapoorji completed a $3.4 billion financing deal, which was the largest private credit deal in India’s history.
Repaying the bonds with some of the proceeds from a possible Tata Sons stake sale would help Shapoorji to lower borrowing costs. The group offered a 19.75% yield in the May transaction, and securing a key regulatory waiver from the banking regulator last month helped to avert an increase in the cost of its private credit deal.
If Shapoorji fails to proceed with the sale of its Tata Sons stake, it plans to begin refinancing discussions for the 2026 Goswami debt in November, according to the people familiar with the situation. This strategic move underscores the group’s commitment to managing its financial obligations and maintaining a strong financial position in the market.
The Shapoorji Pallonji Group, a prominent name in India’s real estate and infrastructure sector, has a long history of significant projects and investments. The potential sale of its stake in Tata Sons and the subsequent debt repayment could have far-reaching implications for the group’s financial health and future growth strategies.
Frequently Asked Questions
What is the Shapoorji Pallonji Group planning to do with the proceeds from a potential sale of its stake in Tata Sons?
Shapoorji Pallonji Group plans to use some of the proceeds from a potential sale of its 18.4% stake in Tata Sons to repay debt held by its infrastructure unit, particularly the 88.1 billion rupees ($1 billion) in bonds issued by Goswami Infratech Pvt.
When are the bonds issued by Goswami Infratech Pvt. maturing?
The bonds issued by Goswami Infratech Pvt. are maturing in April next year.
What is the current status of the discussions between Shapoorji and Tata Sons?
The talks are currently at an early stage, and the plans could still change. Shapoorji Group has not commented, and Tata Sons has declined to comment on the matter.
What is the significance of the $3.4 billion financing deal completed by Shapoorji last year?
The $3.4 billion financing deal completed by Shapoorji last year was the largest private credit deal in India’s history, which helped the group secure significant funding. Repaying the bonds with proceeds from a possible stake sale would help lower borrowing costs.
What will Shapoorji do if the sale of its Tata Sons stake does not proceed?
If the sale of its Tata Sons stake does not proceed, Shapoorji plans to begin refinancing discussions for the 2026 Goswami debt in November.
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