Shapoorji Pallonji (SP) Group has received approval for relaxation in certain conditions from its bond (NCDs) holders. This can help the group to refinance the loan taken by pledging the shares of Tata Sons. Shapoorji Pallonji Group informed the stock exchanges that it has also received in-principle approval from the stock exchanges for changes to the terms of its non-convertible debentures (NCDs).
Moneycontrol first reported on December 6 that Shapoorji Pallonji Group is seeking approval from its NCDs holders to remove certain conditions. The group told its bondholders that it is trying to refinance the loan taken by its unit Sterling Investment Corp Pvt Ltd against the pledge of Tata Sons shares. To ease the process, it needs to relax certain conditions from NCDs holders.
Before this relaxation, Goswami Infratech, a unit of Shapoorji Pallonji Group, had repaid loans worth about Rs 14,300 crore to these NCDs holders. The company received this amount from the Initial Public Offer (IPO) of Afcons Infrastructure and the sale of its stake in Gopalpur Port to Adani Group. After this, the bondholders have approved some relaxation in the conditions to the group.
What is the matter?
Goswami Infratech, a Shapoorji Pallonji Group company, had raised Rs 14,300 crore by issuing zero-coupon non-convertible debentures (NCDs) due in June 2023. These NCDs were bought by leading investors like Cerberus Capital, Verde Partners, Canyon Capital, Davidson Kempner besides Deutsche Bank, Edelweiss Special Opportunities Fund and Ares SSG. Later, most of these NCDs were sold to domestic investors.
Goswami Infratech had issued these NCDs with a special condition. Under this condition, if on May 26, any group company of Shapoorji Pallonji raises loan from the market at an interest rate higher than the interest rate given to the bondholders of Goswami Infratech, then the bondholders of Goswami will also be entitled to get the same higher interest rate.
Moneycontrol reported on May 6 last year that SP Group had started talks with Power Finance Corporation (PFC) to secure $1.2 billion to refinance part of the Rs 20,000 crore loan taken against Tata Sons shares. Has given.
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