Shapoorji Pallonji Considers Selling Tata Sons Stake to Repay ₹8,810 Crore Debt

Shapoorji Pallonji Group is considering selling its 18.4% stake in Tata Sons to repay a significant debt of ₹8,810 crore. The move could help the company reduce borrowing costs and free up funds for other projects.

Shapoorji PallonjiTata SonsDebt RepaymentReal EstatePuneReal Estate NewsAug 12, 2025

Shapoorji Pallonji Considers Selling Tata Sons Stake to Repay ₹8,810 Crore Debt

Real Estate News:The Shapoorji Pallonji Group is contemplating the sale of its 18.4% stake in Tata Sons to repay ₹8,810 crore in bonds, according to a report by Bloomberg. The bonds were issued by Goswami Infratech Pvt and are due in April 2026. Repaying this substantial debt could free up significant funds for the group, allowing it to focus on other strategic projects.

The company is currently in the early stages of discussions regarding the potential sale. If the sale goes through, it would help Shapoorji Pallonji cut borrowing costs, which have been quite high. In May, the company offered a 19.75% yield to raise funds, a rate that reflects the high cost of borrowing in the current market. Additionally, Shapoorji Pallonji recently secured a key waiver from the banking regulator to avoid an increase in costs for its private credit deal, which raised $3.4 billion, the largest-ever private credit deal in India.

Last week, The Economic Times reported that Tata Sons had initiated discussions with Shapoorji Pallonji about options for the group to exit its stake. This comes less than three months after the record-breaking private credit deal. If the stake sale does not materialize, Shapoorji Pallonji plans to start talks in November to refinance the Goswami debt, which matures in 2026.

In a separate development, Shapoorji Pallonji Real Estate (SPRE), the real estate arm of the group, has launched a premium residential project in Pune with a revenue potential of ₹800 crore. The project, named VANAHA Verdant, is located near Bavdhan in southwest Pune and will cover five acres, offering about one million square feet of saleable space. It is part of a larger 1,000-acre integrated township being developed by SPRE.

The township includes over 350 acres of open spaces and a mix of residential, commercial, and retail areas. It is strategically located close to major IT hubs such as Hinjewadi, Mahalunge-Mann Hi-Tech City Park, Baner, and the Mumbai-Bengaluru National Highway. Upcoming infrastructure projects, including Metro Line-2 from Chandni Chowk to Viman Nagar, the six-lane Paud-Mahad corridor, a new eight-lane flyover at Chandni Chowk, and the 14-lane Pune Ring Road, are expected to significantly enhance connectivity in the area.

Within the township, SPRE has already sold more than 2,000 apartments worth ₹1,800 crore in both mid-segment and premium housing projects. The launch of VANAHA Verdant is a testament to the group's commitment to developing high-quality residential projects in strategic locations.

Frequently Asked Questions

What is Shapoorji Pallonji considering selling its stake in?

Shapoorji Pallonji is considering selling its 18.4% stake in Tata Sons to repay ₹8,810 crore in bonds.

Why is Shapoorji Pallonji selling its stake in Tata Sons?

The sale is intended to repay a significant debt of ₹8,810 crore and to reduce borrowing costs, which have been high.

What is the revenue potential of the new residential project in Pune?

The new residential project, VANAHA Verdant, has a revenue potential of ₹800 crore.

Where is the VANAHA Verdant project located?

The VANAHA Verdant project is located near Bavdhan in southwest Pune, covering five acres.

What are some of the upcoming infrastructure projects near the VANAHA Verdant project?

Upcoming infrastructure projects include Metro Line-2 from Chandni Chowk to Viman Nagar, the six-lane Paud-Mahad corridor, a new eight-lane flyover at Chandni Chowk, and the 14-lane Pune Ring Road.