Shapoorji Pallonji Group (SP Group) is in talks with a host of firms, including the Power Finance Corporation, to refinance or raise about Rs 20,000 crore.
Discussions are also on with global alternative investment firms Davidson Kempner Capital Management and Cerberus Capital Management, sources close to the development said. The group will formally launch the fundraising initiative in seven to 10 days as the debt repayments are due in May.
SP Group had taken the debt in 2021 by pledging its stake in Tata Sons, the investment holding company of business conglomerate Tata Group. Sterling Investment Corporation (SICPL), SP Group’s investment vehicle, holds a 9.1% stake in Tata Sons.
The debt, raised through issuance of bonds, had a repayment tenure of a little over three years. The funds were primarily raised from US hedge fund Farallon Capital and Ares.
In June last year, Goswami Infratech, a promoter entity of SP Group, secured Rs 14,300 crore through non-convertible debentures to a group of global investors, including Varde Partners, Canyon Capital and Ares SSG.
S&W mulls stake sale
Separately, Sterling and Wilson (S&W), SP Group’s engineering, procurement and construction company, is also in talks with a group of strategic investors to raise Rs 700 crore through a stake sale in its data centre business. It is planning to carve out the data centre business into a new entity. Over the last eight years, S&W has built 24 data centres globally, totalling 63 MW of capacity.
It is executing 5 MW in Saudi Arabia, 10 MW for a hyperscaler in Hyderabad and 3 MW for a client in African countries of DR Congo and Angola. S&W is expecting further projects in India, Egypt, UAE, KSA, Kenya, Tanzania, and Nigeria.