SP group promoter entity to redeem NCDs from HNIs, family offices

Shapoorji Pallonji

Shapoorji Pallonji group is looking to redeem debentures worth Rs 900 crore, which were issued by promoter group entity Goswami Infratech in 2023, according to a company filing.

These non-convertible debentures (NCDs) are part of a bigger round of debt issuance of Rs 14,300 crore. A part of this debt issuance was sold down by banks and wealth managers to high-networth individuals and family offices.

As per the company filing, investors eligible for this “voluntary redemption” round include investors who hold less than 5,000 debentures, equivalent to Rs 50 crore. The debentures will be redeemed from December 18 to December 25, as per the company filing.

In the filing SP group said that it is in the process of raising funds to repay the debenture holders.

Goswami Infratech has so far repaid Rs 5,485 crore to the investors of this NCD issue, with an outstanding amount of Rs Rs 8,815 crore, according to Care Ratings

These NCDs mature in April 2026.

Moneycontrol reported on October 10th that the Shapoorji Pallonji Group faces about $1.2 billion in debt repayments by December. While the HNI and family offices holding the NCDs are expected to
to redeem their NCDs, institutional investors are expected to roll over a significant part of their debt.

The redemption of the NCDs comes at a time when SP group is engaged in talks with investors to raise around Rs 20,000 crore to Rs 25,000 crore to refinance existing loans.

This follows a recent high cost debt issuance in May when the group raised over $3.2 billion in the largest private credit financing of the year. Funds were raised against the group’s 9.2% stake in Tata Sons held by Sterling Investment and other group assets.

Funds were used to redeem NCDs previously issued to Ares and Farallon, worth over $2 billion, as well as for part redemption of the Goswami Infratech NCDs.