Shapoorji Group Taps Houlihan Lokey For Business Review
The US boutique investment bank will offer advice on managing Shapoorji’s debt load and optimizing its capital structure, said people in the know.
(Bloomberg) --
Shapoorji Pallonji Group has hired Houlihan Lokey Inc. to conduct an internal business review as the Indian conglomerate seeks to raise up to 200 billion rupees ($2.4 billion) of new funds, according to people familiar with the matter.
The US boutique investment bank will offer advice on managing Shapoorji’s debt load and optimizing its capital structure, said the people who requested anonymity discussing private matters. Its mandate doesn’t involve debt restructuring and Shapoorji doesn’t intend to restructure its debt, the people added.
Houlihan Lokey declined to comment. A Shapoorji representative didn’t immediately respond to a request for comment.
The engineering and construction group, controlled by Indian billionaire Shapoor Mistry, is in talks with lenders for up to 200 billion rupees of fresh funding, including as much as 150 billion rupees from state-run Power Finance Corp., Bloomberg News reported Thursday.
Shapoorji plans to use the proceeds from the lending it is seeking to partly refinance debt taken about three years ago by its main investment vehicle Sterling Investment Corp. against shares in Tata Sons, the holding company of India’s diversified conglomerate Tata Group. Due in June, the debt is owed collectively to US asset manager Ares Management Corp. and US hedge fund Farallon Capital Management LLC., according to the people.
--With assistance from Saikat Das and P R Sanjai.
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