Shapoorji Pallonji Seeks Two-Month Extension on ₹143 Billion Debt Repayment: Business Standard

Shapoorji Pallonji Group has asked investors to extend the repayment deadline on ₹143 billion of zero-coupon notes at its unit Goswami Infratech from April 30 to end-June, Business Standard reported. The discussions are private, the report noted, citing people familiar with the matter who asked not to be identified.

The extension request comes as Goswami Infratech looks to refinance the existing bond through a planned dollar bond sale with a more complex structure. As per the report, the additional time, at the same interest rate, is intended to allow the company to complete that refinancing.

The group has been meeting investors in Hong Kong and Singapore this week, and is scheduled to hold virtual calls with US-based investors as part of plans for a debut dollar bond offering of up to $1 billion. The final size of the offering will depend on investor demand, the report added. As per reports, remaining refinancing needs are expected to be met through domestic debt markets, with the group pursuing a combination of funding options ahead of the extended deadline.

The borrowing is partly backed by Shapoorji Pallonji's 18.4% stake in Tata Sons; accumulated by the Mistry family between 1965 and 1995, which holds interests in over 30 companies. As per the report, pressure on the group's borrowing position has been compounded by a decline in the derived value of pledged Tata Sons shares, tied to a slump in Tata Consultancy Services stock. A unit of the group has secured approval from major lenders to ease a key debt covenant after falling collateral values pushed it closer to its borrowing limits, the report mentioned.

Geopolitical tensions and delays in unlocking value from the Tata Sons stake have further complicated refinancing efforts, the report noted. Shapoorji Pallonji was India's largest private credit borrower last year, having closed a $3.4 billion financing that was the country's biggest such deal. A group spokesperson did not respond to a request for comment, as per the report.