Shapoorji Pallonji raises Rs 21,500 cr debt, among India's largest such deals
What's the deal? India's Shapoorji Pallonji Group has priced roughly Rs 21,500 crore ($2.58 billion) in debt, the first tranche of a larger refinancing programme. Deutsche BankDealroom has a profile for this one. Try Dealroom →, BlackRock, Davidson Kempner Capital ManagementDealroom has a profile for this one. Try Dealroom →, Värde PartnersDealroom has a profile for this one. Try Dealroom →, Ares ManagementDealroom has a profile for this one. Try Dealroom →, BroadPeak PartnersDealroom has a profile for this one. Try Dealroom →, Farallon CapitalDealroom has a profile for this one. Try Dealroom →, Brevan HowardDealroom has a profile for this one. Try Dealroom →, Centiva CapitalDealroom has a profile for this one. Try Dealroom →, Goldman Sachs Asset Management, and RV CapitalDealroom has a profile for this one. Try Dealroom → are among the investors.
How big? 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.
How it's structured: The financing splits into a Rs 15,200 crore rupee tranche and roughly $650 million in offshore dollar bonds. The three-year rupee bonds priced to yield about 18.95%; the dollar tranche is expected to carry around 14.5%. Funding is scheduled to complete on July 20.
Why now? The group is refinancing to replace higher-cost debt with longer-tenor funding, backed by its 18.37% stake in unlisted Tata SonsDealroom has a profile for this one. Try Dealroom →. The raise runs through group entity Eqyizen Investment.
Who's buying? Both tranches were fully subscribed, with the dollar issue oversubscribed. About half of demand came from investors backing a Shapoorji Pallonji financing for the first time.
What could go wrong? The term sheet includes milestones tied to a possible Tata Sons listing or settlement within 18 months. Investors took comfort from Reserve Bank of India rules that make a Tata Sons listing likely, though the timing remains outside the group's control.
The signal: One of India's biggest debt deals reflects a group spreading its funding across foreign banks, private credit, and domestic pools. "With this fund raise, the company is reducing reliance on a handful of lenders," said an investor in the new rupee tranche.
Read more: The Economic Times
Image credit: Generated with Gemini
