Shapoorji Pallonji Group launches ₹25,500 crore Eqyizen bond issue backed by Tata Sons stake to refinance Goswami Infratech debt
Shapoorji Pallonji Group Launches ₹25,500 Crore Bond Issue Against Tata Sons Stake
Shapoorji Pallonji Group launched a ₹25,500-crore bond issue on July 2, 2026, structured as zero coupon, unlisted and unrated non-convertible debentures (NCDs) issued by Eqyizen Investment. The issue is secured against the group's 18.37% stake in Tata Sons.
Yield and Refinancing Purpose
The bonds carry an 18.95% interest rate and are primarily used to refinance existing debt. The proceeds are earmarked chiefly for retiring debt issued by Goswami Infratech, a real estate and civil engineering unit, which had ₹14,300 crore of high-yield bonds with a 20.75% yield that matured on June 30, 2026.
Liquidity Trigger Conditions
The bond's terms require that within 18 months of issuance, either Tata Sons announces an initial public offering (IPO), or SP Group reaches a settlement with the Tata holding company over its ownership. A banking industry official told ET: "The bond's terms themselves acknowledge that monetisation of the Tata Sons stake is central to repayment."
Delayed Refinancing Timeline
The refinancing was originally targeted for completion by end-April, but was delayed to July after market volatility from the US-Iran conflict disrupted execution, prompting the group to seek additional time from creditors as debt maturities approached. The issue launched on July 2, with settlement likely in the following week.
About Shapoorji Pallonji Group
Founded in 1865 as a partnership firm, Shapoorji Pallonji began with construction of a pavement on Girgaum Chowpatty and later built infrastructure including a reservoir on Malabar Hill that supplied water to Mumbai for over 100 years. The company is known for building some of Mumbai's landmarks around the Fort area, including the Hong Kong Bank, Grindlays Bank, Standard Chartered Bank and Reserve Bank of India building, Bombay Stock Exchange building and Taj Intercontinental.
Shapoorji Pallonji & Company Private Limited, trading as Shapoorji Pallonji Group, is an Indian conglomerate headquartered in Mumbai whose primary business interests include construction and engineering, infrastructure, real estate, energy, and textiles. The Shapoorji Pallonji Group has three listed companies—Afcons Infrastructure, Forbes & Company Ltd, and Gokak Textiles.
Broader Refinancing Context
The group began a series of divestments to reduce its debt, starting with the initial public offering of Sterling & Wilson Solar in 2019. In 2021–2022, Shapoorji Pallonji Group demerged Eureka Forbes from Forbes & Company Ltd and sold its entire stake in Eureka Forbes to Advent International. In 2023, the group sold PNP Port in Raigad district to JSW Group; in 2024, it sold its controlling stake in Gopalpur port to Adani Ports & SEZ.