Shapoorji Pallonji Group completes ₹21,500 crore ($2.25 billion) debt refinancing after bond issue fully subscribed
Shapoorji Pallonji Group Completes ₹21,500 Crore Debt Refinancing
Shapoorji Pallonji Group has completed its planned fundraising after accepting bids worth ₹21,500 crore ($2.25 billion) for a three-year rupee bond issue, marking one of India's largest private credit transactions in recent years. At about $2.58 billion, this ranks among the largest debt rounds ever recorded in India, sitting in the 99.7th percentile of more than 1,200 such deals tracked all-time.
Structure of the Refinancing
The deal is split into two primary segments, consisting of ₹15,200 crore in rupee-denominated bonds and approximately $650 million raised through offshore dollar-denominated instruments. SP Group company Eqyizen Investment raised funds through three-year zero-coupon rupee bonds yielding 18.95%. Mercury Finance is offering the three-year securities with a yield of 14.50%.
The issue closed for subscription on Friday and is due to settle on Monday, with settlement now completed as of July 20, 2026.
Purpose and Investor Terms
The long-delayed fundraising, aimed at refinancing existing debt, was completed through an investment by one SP Group entity in another, with investors assured the group would monetise part of its Tata Sons stake through a listing or share sale within 18 months. SP Group, Tata Sons' largest minority shareholder, owns around 18.4% of the company's shares, has struggled for years to monetise the holding.
Institutional Investor Participation
Notable participants in the rupee tranche include Deutsche Bank, Cerberus Capital Management, Davidson Kempner, Varde Partners, and Ares Management. The dollar-denominated portion drew support from prominent global institutions such as BlackRock, Goldman Sachs Asset Management, and Brevan Howard.
About Shapoorji Pallonji Group
Shapoorji Pallonji Real Estate is the residential development arm of the Shapoorji Pallonji Group, a Mumbai-headquartered conglomerate founded as Littlewood Pallonji in 1865. Shapoorji Pallonji & Company Private Limited trades as the Shapoorji Pallonji Group, with primary business interests in construction and engineering, infrastructure, real estate, energy, and textiles. The parent organisation comprises 15 major companies delivering end-to-end solutions across six business segments, with a workforce of over 37,000 people operating in more than 40 countries.