Global investor consortium lines up Rs 2,100 crore investment in SP Group
The group has also sought an extension of payments on non-convertible debentures of up to Rs 2,100 crore, which are due in September, till December this year.
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NEW DELHI: Engineering and construction major Shapoorji Pallonji group is gearing up to receive investments of over Rs 2,100 crore from a consortium of global investors led by Deutsche Bank, according to sources. The global investors are existing investors in the group's investment company Goswami Infratech, which is also one of the promoter companies of Afcons Infrastructure that is scheduled for Rs 7,000 crore IPO early next month.
The group has also sought an extension of payments on non-convertible debentures of up to Rs 2,100 crore, which are due in September, till December this year.
This development comes on the back of the SP Group lining up near-term repayments of nearly Rs 8,000 crore through identified liquidity events, including proceeds from the upcoming IPO Afcons Infrastructure and from the sale ports assets, a person aware of the development said.
"A few global investors in Goswami Infratech Pvt Ltd have agreed in principle to further their investments in the SP Group company," the person added.
The consortium will be investing over Rs 2,100 crore in the first phase in the SP Group as a pure investment in debentures, the person said.
When reached out for comments, a spokesperson of SP Group confirmed the development. "We are proud to have very reputed global investors in our cap table. We are committed to our promises to our lender partners, as the Group embarks on a new phase of growth," the spokesperson said.
On the issue of the reported extension for payment of coupon on Rs 14,300 crore of high-yield bonds that SP Group has sought, a source said these bonds mature in December 2025 and there is no need for such a thing at present.
The SP Group has been on an aggressive deleveraging strategy driven by select monetisation of its assets, including sales of Eureka Forbes at an enterprise value of Rs 4,400 crore, selling of 40 per cent stake in Sterling & Wilson Renewable and divesting its entire shareholding in SP Jammu Udhampur Highway Ltd to the Indian sovereign wealth fund, National Investment and Infrastructure Fund (NIIF) at an enterprise value of Rs 2,100 crore.
The group's sale agreement with Adani Ports for its port at Gopalpur Odisha, had recently been approved by the Odisha government.
In March this year, Adani Ports and Special Economic Zone Ltd (APSEZ) had entered into a definitive agreement to purchase the 56 per cent stake of the SP Group and 39 per cent of Orissa Stevedores Limited (OSL) in Gopalpur Port Limited (GPL) at an enterprise value of Rs 3,080 crore.