Introduction
Mumbai: In a letter obtained by Reuters on Monday, bondholders of Shapoorji Pallonji Group and group company Goswami Infratech sought more time for bond payments. Bondholders cited economic impact as a reason for their request. Emphasizes the need for awareness in these challenging times.
Table of Contents
- Shapoorji Pallonji: Deadline till September 30
- Shapoorji Said That Priority Will Be Given to Repayment of Loans
- Over 9 Percent Stake in Tata Sons
- Agreement with Adani Ports and Special Economic Zone
SP Group firm Goswami Infratech Shapoorji Pallonji Group’s zero-coupon non-convertible debentures (NCDs) of Rs. 14,300 crore loan repayment terms sought to be extended. The NCDs were issued to raise funds to repay loans taken by Shapoorji Pallonji Group last year. The extension of loan repayment terms will provide flexibility to Goswami Infratech in meeting its financial obligations.
This move will help Goswami Infratech avoid potential liquidity issues and ensure smooth operations. It also demonstrates SP Group’s confidence in Goswami Infratech’s long-term prospects. This strategic decision highlights the strong partnership between Goswami Infratech and Shapoorji Pallonji Group and reflects a commitment to economic stability and long-term growth.
Shapoorji Pallonji: Deadline till September 30
By May 26, Shapoorji had paid Rs. 1,400 crores to be paid. However, the group approached lenders to revise the repayment terms. It has given a deadline of September 30 to make these payments. The group cited the challenges faced due to the COVID-19 pandemic as the reason for seeking revision of the repayment norms.
Deutsche Bank and Standard Chartered Bank are the lead arrangers for this fundraising for SP Group. SP Group is a leading energy utility company in Singapore, and the fundraising will support its sustainable energy initiatives. The collaboration with Deutsche Bank and Standard Chartered Bank highlights.
This partnership signifies the banks’ confidence in SP Group’s growth potential and commitment to sustainability. It also means the banks support SP Group’s efforts to transition towards renewable energy sources and reduce carbon emissions. It showcases a strong alignment between the companies’ values and goals in promoting a more sustainable future.
Shapoorji Said That Priority Will Be Given to Repayment of Loans
Shapoorji told the NCD holders that they are in the process of raising funds to repay the loan raised on behalf of Tata Sons. The Company is confident it can successfully raise the required funds within the stipulated time frame. Shapoorji assured the NCD holders that loan repayment would be prioritized to maintain a positive relationship with investors.
Sterling Investments Corporation Private Limited (SIPL) and Goswami Infratech to repay loans of NCD holders Rs. 1,400 crores more time is needed to repay it, it said. The companies are working on a revised repayment schedule in consultation with the lenders.
They are committed to fulfilling their financial obligations promptly. The companies are also exploring various fundraising options to expedite the repayment process. They are in constant communication with the NCD holders to provide updates on the progress of their repayment plan.
Over 9 Percent Stake in Tata Sons
Sterling Investment owns a 9 percent stake in Tata Sons. In 2021, it issued bonds worth Rs 20,000 crore for three and a half years. The Company is diversifying its portfolio and aims to provide maximum returns to its shareholders through strategic investments in promising opportunities.
With a strong track record of successful investments, Sterling Investment pursues profitable ventures. It is confident in its ability to identify and invest. The issuance of bonds demonstrates the Company’s commitment to long-term growth and value creation for its shareholders. The bonds were raised from the US hedge fund Farallon Capital.
Agreement with Adani Ports and Special Economic Zone
On March 26, SP Group said it had entered into an agreement with Adani Ports and Special Economic Zone to sell a 95 percent stake in Odisha’s Gopalpur Port for Rs 1,349 crores. The stake sale is expected to help SP Group reduce its debt and focus on its core businesses.
Gopalpur Port in Odisha: Rs. 1,349 crores. This agreement is subject to regulatory approvals and is expected to be completed by the end of the financial year. Gopalpur Port is a deep-water, all-weather port in Odisha and has the potential for significant growth in the future.
The Securities Exchange Board of India will raise Rs 7,000 crores through an initial public offer (IPO), which will launch in the next financial year. The IPO will strengthen SEBI’s regulatory framework and assist it in expanding its operations. Afcon’s public listing by June is also part of the group’s debt deal with lenders.
Conclusion
The situation facing Shapoorji Pallonji Real Estate underlines the economic crisis. The outcome of the Company’s request for an extension will affect its bondholders. It also demonstrates the resilience of businesses in navigating challenging times. For more information, visit openplot.
Also read: Shapoorji Pallonji Group to Launch a New Residential Township in Lavale, Pune