Global investor consortium lines up Rs 2,100 crore investment in SP Group

New  Delhi: According to sources, the Shapoorji Pallonji group, a leading company in engineering and construction, is preparing to secure investments exceeding Rs 2,100 crore from a group of international investors led by Deutsche Bank. The global investors are current investors in Goswami Infratech, the investment company of the group and a promoter company of Afcons Infrastructure, which is set to launch a Rs 7,000 crore IPO next month.

The group is also requesting a extension for payments on non-convertible debentures of Rs 2,100 crore, due in September, until December of this year. The SP Group is planning to repay almost Rs 8,000 crore in the near future by utilizing funds from the upcoming IPO of Afcons Infrastructure and selling ports assets, according to a source familiar with the situation. The person mentioned that some international investors in Goswami Infratech Pvt Ltd have tentatively agreed to increase their investments in the SP Group company.

The group plans to invest more than Rs 2,100 crore in the initial stage in the SP Group solely through debentures, as stated by the individual. When contacted for a statement, a representative from SP Group verified the progress. We are pleased to have highly esteemed international investors on our capitalization table. The spokesperson stated that the Group is dedicated to following through on its commitments to its lender partners as they enter a new period of expansion. A source mentioned that SP Group has requested an extension for payment of coupon on Rs 14,300 crore high-yield bonds maturing in December 2025, stating that there is currently no requirement for it.

The SP Group is focused on reducing its debt through asset sales, including divesting Eureka Forbes for Rs 4,400 crore, selling a stake in Sterling & Wilson Renewable for 40 pc, and selling its share in SP Jammu Udhampur Highway Ltd to NIIF for Rs 2,100 crore. The Odisha government recently approved the group's sale agreement with Adani Ports for its Gopalpur Odisha port. Earlier this year in March, APSEZ had made a confirmed deal to acquire 56 pc of the SP Group's stake and 39 pc of OSL's stake in GPL for Rs 3,080 crore.