Shapoorji Pallonji Group secures Rs 2,100 crore from a Deutsche Bank-led consortium to bolster growth and prepares for a Rs 7,000 crore IPO.
Leading engineering and construction giant Shapoorji Pallonji Group has recently achieved funds raising over Rs 2,100 crore with the assistance of a Deutsche Bank-led consortium. This financial boost forms part of the group’s expansionist plans, where it seeks to strengthen its investment company, Goswami Infratech Pvt Ltd, which serves as a promoter group of Afcons Infrastructure.
Moreover, Afcons Infrastructure Company plans an IPO next month, expected to be worth Rs 7,000 crore, which can be seen as another important stage in the Company’s financing plan.
The entry of the new strategic partners in the global consortium brings confidence to the group, and this is shown by existing stakeholders of Goswami Infratech. This first phase of investment will be invested solely in debentures to strengthen the group’s financial structure and future earnings prospects.
Shapoorji Pallonji’s Asset Sales for Liquidity
Besides the focus on obtaining new funding, the Shapoorji Pallonji Group has been quite aggressive in debt reduction. This approach involves the management seeking to sell some of the significant assets to achieve high levels of cash to cater to its short-term liabilities. The group expects to achieve about Rs 8,000 crore in liquidity events from a mix of infrastructure sectors and ports through offering and divestment, including Afcons Infrastructure IPO.
The most recent prominent deals include the sale of Eureka Forbes at an EV/EBITDA of 8. 8, carried out on an enterprise value of Rs 4,400 crore and the divestment of the 40% stake in Sterling & Wilson Renewable. Additionally, the group has divested its entire stake in SP Jammu Udhampur Highway Ltd to NIIF at an enterprise value of Rs 2,100 crore. These strategic sales reflect the group’s focus on a strong balance sheet and operational excellence.
SP Group Extends Debenture Repayment
Alongside these investment and monetization measures, the SP Group has secured an extension for repaying the Rs 2,100 crore of non-convertible debentures that were scheduled for repayment between September and December this year. This extension follows the group’s financial management plan, as the group can continue its growth and investment activities without the pressure of immediate liquidity needs.
The group’s spokesman reiterated the obligations towards its lenders and shareholders noting that the group enjoys the trust of global investors. By implementing the strategy of deleveraging and asset monetization and with investments from the consortium like the one from the SP Group, the company is primed for stable and enduring growth and prosperity.