- Shapoorji Pallonji seeks to delay repayment of 143 billion rupees zero-coupon notes
- The company aims to refinance debt via a planned dollar bond sale with complex structure
- Refinancing efforts complicated by geopolitical tensions and Tata Sons stake delays
Shapoorji Pallonji Group, the Indian conglomerate behind the nation's biggest-ever private credit deal, is trying to delay paying a separate debt, people familiar with the matter said, underscoring mounting strains amid volatile markets.
The company, controlled by billionaire Shapoor Mistry, has asked investors to let it repay 143 billion rupees ($1.5 billion) of zero-coupon notes at its unit Goswami Infratech Pvt. at the end of June instead of the current April 30 deadline, according to the people, who asked not to be identified as the discussions are private.
Goswami Infratech is looking to refinance its existing bond through a planned dollar bond sale which has a more complex structure, the people said. Extending the maturity of this debt at the same interest rate would give the company additional time to complete its refinancing, they said.
A Shapoorji Pallonji spokesperson did not respond to a request for comment.
The extension request underscores mounting pressure on the borrower to secure funding, with geopolitical tensions and delays in unlocking value from its Tata Sons Ltd. stake complicating refinancing efforts.
The infrastructure-focused conglomerate has been meeting investors in Hong Kong and Singapore this week, and is scheduled to hold virtual calls with US-based investors as part of plans for its debut dollar bond sale of as much as $1 billion, the people said. The final size of the offering has yet to be determined and will depend on investor demand, they said.
In addition to the proposed offshore issuance, the remaining refinancing needs are expected to be met through local debt markets, the people said. The group is pursuing a combination of funding options as it looks to complete the refinancing before the extended deadline.
The borrowing is partly backed by Shapoorji Pallonji's 18.4% stake in Tata Sons, the holding company of India's Tata Group, a conglomerate spanning more than 30 companies. The stake was accumulated by the Mistry family over several decades between 1965 and 1995.
A unit of the group has also secured approval from its major lenders to ease a key debt condition after falling collateral values pushed it closer to its borrowing limits. The pressure came after a decline in the derived value of Tata Sons shares pledged as collateral, which have been affected by a slump in shares of Tata Consultancy Services.
The conglomerate has been India's top private credit borrower, including a $3.4 billion financing last year that was the country's biggest such deal.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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