Shapoorji Pallonji Group Seeks to Raise Up to $200 Million via Private Credit to Address Debt

The Shapoorji Pallonji (SP) Group is looking to raise between $150 million and $200 million as the Indian conglomerate deals with mounting debt obligations and a prolonged wait to monetize its assets.

According to sources familiar with the matter, the group plans to secure the funds through private credit. This would involve issuing additional rupee bonds similar to those initially sold by its Eqyizen Investment Pvt. unit in July. Approximately half of the proceeds from the proposed financing will be allocated to repay creditors of Porteast Investment Ltd., another SP Group unit. The remainder is designated for other group debt liabilities.

Discussions regarding the fundraising are currently at an early stage, and both the final size and terms of the deal remain subject to change. Representatives for the SP Group did not immediately respond to requests for comment.

The fresh financing effort aims to reduce debt at Porteast and alleviate pressure on the group's loan-to-value ratio. This follows a previous fundraising round in September, where the group borrowed about ₹4,450 crore ($467 million) via Eqyizen and through dollar bonds sold by another unit, Mercury Finance Co. Proceeds from that September borrowing were similarly utilized for amortization payments due at Porteast.

The conglomerate has faced financial strain due to upcoming debt maturities and delays in asset monetization. This includes its significant stake in Tata Sons Pvt., where the Mistry family—which controls the SP Group—holds an approximately 18.4% share as the second-largest shareholder. Executives at Tata Sons have remained locked in a debate over whether to pursue a public listing.

People familiar with the fundraising plans indicate that the SP Group is seeking to complete the new private credit financing by mid-November.

"Large conglomerates navigating debt maturities often turn to private credit instruments when traditional asset monetization faces delays. For the Shapoorji Pallonji Group, utilizing rupee bonds through units like Eqyizen Investment provides a structured mechanism to address immediate amortization payments at Porteast Investment and ease loan-to-value pressures. However, executing such transactions within tight timelines highlights the ongoing liquidity management challenges faced by established business houses awaiting long-term asset realization." — Dr. Shishir Gupta, Founder & CEO, StartupLanes