Shapoorji Pallonji to raise $2.5bn from infrastructure, realty stake sales – Times of India

MUMBAI: Shapoorji Pallonji (SP) Group is looking to raise about $2.5 billion by selling some of its infrastructure and real estate assets to pare debts. It is planning to sell stake in Afcons Infrastructure, a company acquired from ICICI Bank, and Gopalpur Ports, also an acquired asset from metal trader Sara International and entrepreneur Mahimananda Mishra of Orissa Stevedores.
It is also considering selling part of its interests in real estate assets with a development size of over 100 million square feet.

The asset-monetisation proceeds will be used to reduce its debt of Rs 21,000 crore and for other purposes. SP Group refused to comment. Many years ago, it had looked to list Afcons Infrastructure on the Indian stock exchanges. Despite getting regulatory approvals, the proposal was shelved.
The group, led by Shapoor Mistry, has revived plans to sell Gopalpur Ports as the business environment has improved. Cargo movement at the port was impacted after India imposed export duty on certain commodities like iron ore. This tax was subsequently eliminated.
The over $4-billion group – which built the Sultan of Oman’s palace and the Atal tunnel, the world’s longest highway tunnel above 10,000 feet – has been weighing various fund-raising options to improve leverage metrics as rising interest rates add to its challenges. It had divested the water purifier maker Eureka Forbes, the Jammu-Udhampur highway asset, Forbes Facility Services and Sterling & Wilson Renewable Energy to reduce loan obligations. Additionally, the 158-year-old group had raised $1.3 billion by pledging half of its 18.37% stake in Tata Sons with Farallon Capital and Ares SSG Capital.
These moves helped SP to exit RBI’s Covid debt-restructuring scheme that entailed no haircut to lenders ahead of the timeline. SP and related parties still own 33% in Sterling & Wilson Renewable, which they plan to exit in the future. Majority owned by Reliance Industries, the renewable company has a market cap of Rs 7,000 crore.
Apart from the fresh asset sale plans, SP is also raising $1.75 billion from pledging its remaining Tata Sons stake. It is in the midst of holding roadshows in Singapore and Hong Kong with foreign fund managers.