MC EXCLUSIVE Shapoorji Pallonji group lenders likely to rollover $1.2 billion debt

Recent developments at Tata Sons, however, have added more uncertainty to SP group’s exit prospects from the Tata group holding company.

• SP Group's $1.2B debt likely to be rolled over again
• Sterling Investments' Tata Sons stake used as loan collateral
• SP Group faces challenges exiting Tata Sons to repay debt

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Lenders to Shapoorji Pallonji (SP) Group, to whom the group owes around $1.2 billion are likely to roll over the debt, people aware of the development told Moneycontrol.

Moneycontrol first reported on October 10 that the Shapoorji Pallonji Group faced about $1.2 billion in debt repayments by December. Those repayments were pushed back to April 2026 at the time. It now seems that another rollover is on the anvil as the SP Group appears unlikely to be able to mobilise funds for repayment.

Shapoorji Pallonji group denied the development in a response to a Moneycontrol query.

Moneycontrol,  also reported earlier that the group may find it challenging to mobilise the required funds to meet its repayment obligations, driven by the uncertainty over its ability to exit from Tata Sons, where it holds a little more than 18 percent stake. Selling part of its stake in Tata Sons could have helped the group repay large portions of its debt obligations.

Recent developments at Tata Sons, however, have added more uncertainty to SP group’s exit prospects from the Tata group holding company.

On February 24, Moneycontrol reported that Noel Tata, chairperson of Tata Trusts, while discussing the re-appointment of Tata Sons chairman N Chandrasekaran, is understood to have indicated that certain expectations would need to be addressed before the Trusts would be comfortable backing another term for Chandra, which included keeping Tata Sons unlisted.

The promoter-level debt held by the Mistry family is estimated at Rs 25,000–30,000 crore, roughly half of the group’s total debt of Rs 55,000–60,000 crore.

SP Group’s Debt Problems

Moneycontrol had earlier reported that the SP Group was in advanced discussions with a clutch of global alternative asset investors to refinance $3.2 billion of total outstanding debt. The refinancing, which took place in May 2025, was led by Davidson Kempner and Cerberus Capital, with partial participation from Farallon Capital and Ares Management — both of which rolled over portions of their maturing debt.

The group was also in talks with Power Finance Corporation (PFC) for refinancing at a lower rate. However, the loan was ultimately not sanctioned by PFC’s Investment Committee.

Earlier, Moneycontrol had reported that Goswami Infratech, another SP Group entity, had made repayments of about Rs 14,300 crore using proceeds of the IPO of Afcons Infrastructure and the sale of its stake in Gopalpur Port to the Adani Group.