The Indian group of Shapoorji Pallonji (SP), a conglomerate of construction and real estate, negotiates with global funds of private credit to collect $ 3.3 billion, marking the largest private debt agreement in local currencies in the country. Funds will be used to refinance existing debt.
The group is controlled by billionaire Shapoor Pallonji Mistry, whose family ranks like the 13th rich in India, according to Forbes.
Group debt reached $ 5.2 billion in March 2020 due to high construction costs and working capital shortages during the pandemic. He used a punctual resolution (OTR) of the Reserve Bank of India, reimbursed $ 1.4 billion to the lenders and left the plan by March 2022, becoming the largest and the first fully reimbursed in the country in one year.
In addition, the group has sold its assets, including Eureka Forbes, Gopalpur Port and Dharamtar Port. The company’s debt decreased to $ 2.2 billion on March 31, 2024.
However, maturity debt of $ 3.8 billion between March 2025 and April 2026 is a problem.
In 2021, Sterling Investments, linked to promoters of SP groups, raised $ 2.2 billion in Ares SSG, a capital market company, and Farallon Capital Management LLC, promising a participation of 9.1% in Tata Sons and real estate assets, in control in March 2025.
In June 2023, Cyrus Investments, a subsidiary of the promoter entity of the SP Goswami Infratech group, lifted $ 1.6 billion at an interest rate of 18.75% against a participation of 9.18% in Tata Sons in guarantee, which ripened in April 2026.
The group is negotiating with several investors, including Cerberus Capital Management, Davidson Kempner Capital Management, Varde Partners, Farallon Capital Management, Ares Management and EAAA India Alternatives, to refinance its debt. Deutsche Bank is the only arranger in the agreement.
The SP agreement would deepen the private credit industry of India, which develops as the 2025-2026 budget allocates $ 129 billion in the infrastructure sector and encourages the participation of the private sector.
Indian companies have raised $ 6.77 billion in private credit offers in 2024. In 2025, the market provides key offers, including the second tranche of $ 500 million for capital reliance by the Hinduja group and fundraising $ 212 million by TVS Mobility Group.