Shapoorji Pallonji in talks with Cerberus, Farallon, Ares for ₹143 crore rupee bond offering

Global Investors in Talks for Shapoorji Pallonji's ₹143 Billion Bond

Global investors including Cerberus Capital Management, Farallon Capital Management and Ares Management Corp. are in talks to invest in Shapoorji Pallonji Group's proposed rupee debt of 143 billion rupees ($1.5 billion). The infrastructure-focused conglomerate, backed by billionaire Shapoor Mistry, is proposing to offer 18.75 per cent yield on the zero-coupon bonds of its unit Goswami Infratech Pvt.

Deal Structure and Participants

Farallon may invest at least $300 million in the debt, while Cerberus is in discussions to buy around $150 million. Deutsche Bank, the arranger of the deal, is expected to commit about $400 million, while Davidson Kempner may invest as much as $200 million. JPMorgan and Bank of America are also considering subscribing to a portion of the bonds.

Refinancing Context

The fundraise is part of a broader effort by the SP Group to refinance its existing borrowing that creditors recently agreed to extend until June. The deal is being closely watched as a test of investor appetite for high-yield debt.

About Shapoorji Pallonji

The Shapoorji Pallonji Group operates across real estate, construction, and infrastructure sectors. The group's real estate holdings were consolidated under Shapoorji Pallonji Real Estate, valued at USD 6 billion. The conglomerate has active real estate projects across Indian metro markets, including Mumbai, Pune, Gurgaon, and Kolkata.

Terms of the potential offering may still change, according to sources familiar with the discussions.