Shapoorji Pallonji Group launches Rs 27,000 crore fundraise plan to refinance Goswami Infratech debt
Shapoorji Pallonji announces Rs 27,000 crore refinance plan for Goswami Infratech
The Shapoorji Pallonji Group has launched a plan to raise around Rs 27,000 crore to refinance the debt of its unit Goswami Infratech, as the conglomerate moves to restructure its liabilities and manage upcoming repayments.
Scope of the fundraise
The fundraising is expected to involve both domestic and international investors and may take the form of a large bond issuance. The planned fundraising is aimed at refinancing existing borrowings and easing the company's debt profile as the group works to strengthen its balance sheet.
Goswami Infratech has been exploring options to refinance high-yield notes and other borrowings that are approaching maturity. A portion of those bonds is scheduled to mature in April 2026.
Debt being refinanced
Goswami Infratech, the group's real estate and civil engineering arm, had debt of about Rs 14,300 crore as of June 2023. Goswami Infratech had earlier raised Rs 14,300 crore through a zero coupon bond sale in June 2023 at a yield of about 18.75 per cent, making it one of the costliest private credit deals backed by promoter equity in India.
Use of proceeds and collateral
Proceeds from the issue would largely be used to refinance existing debt and meet other financial obligations. The bonds are expected to be backed by the Shapoorji Pallonji Group's stake in Tata Sons through its investment vehicle Cyrus Investments.
About Shapoorji Pallonji Group
Shapoorji Pallonji & Company Private Limited, trading as Shapoorji Pallonji Group, is an Indian conglomerate headquartered in Mumbai. Its primary business interests include construction and engineering, infrastructure, real estate, energy, and textiles, among others. The company was founded as a partnership firm Littlewood Pallonji in 1865. The first project was the construction of a pavement on the Girgaum Chowpatty, followed by being part of the construction of a reservoir on Malabar Hill which 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.
Debt refinancing strategy
The refinancing effort forms part of the group's broader strategy to manage borrowing costs and stabilise its financial structure. Shapoorji Pallonji 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, Shapoorji Pallonji Group sold PNP Port in Raigad district to JSW Group. In 2024, Shapoorji Pallonji Group sold its controlling stake in Gopalpur port to Adani Ports & SEZ.