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According to sources, business conglomerate Shapoorji Pallonji Group is looking to dispose of key real estate and infrastructure assets as part of a larger debt-restructuring plan. The company will sell portions of its stake in properties where the development area exceeds 100 million square feet.
The company is also considering selling its stake Acons Infrastructure and Gopalpur Ports. Acons Infrastructure was purchased from ICICI Bank, and the latter was purchased from Sara International and Mahimananda Mishra of Orissa Stevedores.
Currently valued at $ 4 billion, Shapoorji Pallonji has been considering several alternative to raise funds as the rising interest rates further add to their woes. Not too long ago the company sold assets such as Eureka Forbes, the Jammu-Udhampur motorway, Forbes Facilities Services and Sterling & Wilson Renewable Energy to reduce its liabilities.
The company was able to raise $1.3 billion by committing half of its 18.37% ownership in Tata Sons to Farallon Capital and Ares SSG Capital. Their goal with the sale of its real estate and infrastructure assets is to raise another $2.5 billion. The revenues from the asset sale would be used for other reasons in addition to paying off the company's debt of Rs 21,000 crore.
Shapoorji Palloni is also hoping to raise $1.75 billion by pledging the remaining of its Tata Sons stock. It is now hosting roadshows with foreign fund managers in Singapore and Hong Kong.
These actions have allowed Shapoorji Pallonji to exit early from the Covid debt-restructuring plan initiated by the RBI that involved no haircuts to lenders. The company and its associated parties continue to hold a 33% stake in Sterling & Wilson Renewable, which they might sell in the future. The renewable company, which is mostly controlled by Reliance Industries, has a 7000-crore rupee market valuation.
Shapoorji Pallonji is a global conglomerate with a rich legacy of over 150 years in the construction, real estate, engineering, and infrastructure sectors. Founded in 1865, the company has grown to become one of India's largest conglomerates, with a presence in more than 70 countries. Shapoorji Pallonji has been involved in some of India's most iconic construction projects. In addition to its construction and engineering projects, the company has diversified into other areas such as renewable energy, water treatment, and biotechnology. Shapoorji Pallonji has earned a reputation for quality, reliability, and innovation, and continues to be a key player in India's economic development.
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