Shapoorji Eyes $1 Billion Debt Payment in Potential Tata Sons Stake Sale
India’s Shapoorji Pallonji Group is considering a significant financial move that could reshape its debt landscape. The group plans to use some of the proceeds from a potential sale of its 18.4% stake in Tata Sons Pvt. to repay debt held by its infrastructure unit, according to people familiar with the matter.
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.
