Shapoorji eyes $1 billion debt payment in possible Tata exit

A full or partial repayment of Goswami’s debt would assist investors to support the group’s other capital expenditure plans

Shapoorji Pallonji 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 Rs 8,810 crore ($1 billion) in bonds that were issued by Goswami Infratech Pvt. and mature in April next year, said the people, who asked not to be identified because the matter is private.

A full or partial repayment of Goswami’s debt would assist investors to support the group’s other capital expenditure plans, they said. Talks are at an early stage and the plans could still change, the people said.

Shapoorji Group did not reply to Bloomberg’s email seeking comment. Tata Sons didn’t offer any comment.

Last week, Economic Times reported Tata Sons had initiated discussions with Shapoorji to explore options for the shareholder to exit its stake in the company. The report came less than three months after Shapoorji completed a $3.4 billion financing in India’s biggest ever private credit deal.

Repaying the bonds with some of the proceeds from a possible Tata Sons stake sale would help Shapoorji to lower borrowing costs, after it offered a 19.75% yield in the May transaction. Shapoorji secured a key regulatory waiver from the banking regulator last month 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.