Shapoorji Pallonji Group sets up real estate holding firm, plans go to take it public: Report

SPRE encompasses the group’s entire real estate portfolio, covering 45 land parcels and projects.

The Shapoorji Pallonji Group has set up a new holding company, Shapoorji Pallonji Real Estate (SPRE), to consolidate its real estate holdings spread across India and plans to monetise the assets by taking the firm public soon, The Economic Times has reported.

The company aims to unlock value, streamline operations and pave the way for monetisation of a portfolio that includes land parcels spread over 2,000 acres. The assets are worth around $6 billion, the report said.

“Creating a unified holding company and consolidating assets under this entity is in line with our strategic vision to streamline operations and enhance value creation,” the report quoted Venkatesh Gopalakrishnan, managing director and chief executive officer of the new entity, as saying. “To drive operational efficiencies and foster greater growth opportunities, we are positioning SPRE to leverage its scale by bringing our diverse real estate portfolio together.”

Moneycontrol couldn't verify the report independently.

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SPRE encompasses the group’s entire real estate portfolio of 45 land parcels and projects.

The assets are primarily in five major cities — Mumbai, Pune, Bengaluru, Gurugram and Kolkata. It also holds large land parcels in Mysuru and Nagpur.

The portfolio has a revenue potential of up to Rs 200,000 crore after development and the consolidation builds up the company’s ability to execute big projects and thus provides confidence to its investors by ensuring transparency and maximum returns, Gopalakrishnan said.

According to the report, the company plans to raise around $800-900 million in the first phase through an initial public offering of about 10-12 percent stake. Further dilutions could follow, taking the total fundraising to around $2 billion.