Shapoorji Pallonji to close Rs 25,400 crore financing by mid-May

Mumbai: Shapoorji Pallonji Group is set to close a roughly Rs 25,400 crore three-year rupee debt raise by May 15, with annual coupons of around 18.75%, through a combination of USD bonds and bespoke loans from foreign banks, domestic investors and global private credit, multiple people familiar with the matter told ET.

The fundraising, part of its Project Ascent plan, is structured across four investor buckets. The bulk- about $800 million to $1 billion- will be raised via dollar bonds USD bonds which is expected to see participation from real money investors such as Blackrock, BFAM, Lombard, etc. The remainder is being placed with a mix of domestic, foreign banks and private credit funds.

The pricing is higher than the initial guidance of 16.5%–17% for the rupee tranche, as it has gone up following geopolitical risks and tighter funding conditions, the sources said.

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Proceeds will be used primarily to refinance about Rs 16,500 crore of rupee bonds at Goswami Infratech, with roughly Rs 4,000 crore earmarked for partial repayment of existing Porteast bondholders.

In parallel, the group has sought bondholder approval to temporarily ease a key loan-to-value covenant on its Rs 28,600 crore rupee bonds issued by Porteast Investment. It has proposed raising the LTV threshold to 40% from 34% for a three-month period, citing market volatility linked to tensions involving Iran.

Both the Goswami and Porteast borrowings are secured against the group’s 18.38% stake in Tata Sons, held through Cyrus Investments and Sterling Investment Corporation.

Investors have been looking at the developments with respect to Tata Sons stake monetisation over the last few months and Tata Sons listing. Over the last two weeks, two key Tata Trustees have supported listing of Tata Sons.

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Also, the revised draft NBFC guidelines issued by RBI has removed qualitative criteria for classifying NBFC as upper layer. There is now only a quantitative criteria of Rs 1 lakh crore book size. Tata Sons meets this quantitative criteria of a book size of Rs 1 lakh crores.

Further, in the NBFC list issued by RBI in April 2026, Tata Sons has been classified as an upper layer NBFC without any caveats.
Investors in the previous transaction included large global funds such as Farallon Capital, Cerberus, Davidson Kempner, Varde, Ares Management.