India’s Shapoorji Pallonji (SP) Group, a construction and real estate conglomerate, is negotiating with global private credit funds to raise $3.3 billion, marking the country’s largest local currency private debt deal. The funds will be used to refinance existing debt.
The group is controlled by billionaire Shapoor Pallonji Mistry, whose family ranks as the 13th richest in India, according to Forbes.
The group’s debt hit $5.2 billion in March 2020 due to high construction costs and working capital shortages during the pandemic. It utilized a one-time resolution (OTR) from the Reserve Bank of India, repaid $1.4 billion to lenders, and exited the plan by March 2022, becoming the largest and first fully repaid OTR in the country within a year.
Further, the group 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, the maturing debt of $3.8 billion between March 2025 and April 2026 is a problem.
In 2021, Sterling Investments, linked to SP Group promoters, raised $2.2 billion from Ares SSG, a capital market company, and Farallon Capital Management LLC, pledging a 9.1% stake in Tata Sons and real estate assets, maturing in March 2025.
In June 2023, Cyrus Investments, a subsidiary of SP Group’s promoter entity Goswami Infratech, raised $1.6 billion at an interest rate of 18.75% against a 9.18% stake in Tata Sons as collateral, which will mature 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 sole arranger for the deal.
The SP deal would deepen India’s private credit industry, which is expanding as the Budget 2025-2026 allocates $129 billion for the infrastructure sector and encourages private sector participation.
Indian corporations raised $6.77 billion in private credit deals in 2024. In 2025, the market anticipates key deals, including the second $500 million tranche for Reliance Capital by the Hinduja Group and the $212 million fundraising by TVS Mobility Group.
