Shapoorji Pallonji may sell stake in three companies
Real Estate

Shapoorji Pallonji may sell stake in three companies

The Shapoorji Pallonji (SP) Group is looking to monetise its assets and may sell its stake partly or fully in at least three of its group companies, including Sterling, Eureka Forbes, Afcons Infrastructure, and Wilson Solar, as a part of the one time debt restructuring package being discussed with the lenders.

SP Group plans to raise about Rs 10,332 crore through this asset sale. Additionally, Inter Corporate Deposits (ICDs) given to the SP Group companies are also likely to be realised, primarily from its real estate joint venture, SD Corp, and other entities forming part of Shapoorji Pallonji and Company Private Ltd's real estate portfolio through monetisation of their project assets.

Last year in September, the company had sought relief to restructure its Rs 10,900 crore debt under the resolution framework for Covid-19 pandemic related stress announced by the Reserve Bank of India (RBI). Sources told the media that the SP Group is in talks with the lenders and likely to finalise the resolution package soon.


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Proceeds from the proposed monetisation of assets will be used for the prepayment of loans.

Proceeds from ICDs aggregating to about Rs 836 crore are also expected to be used for the prepayment of the debt, and any balance amount would be used for company operations.

As a part of the one time restructuring, promoter debt of Rs 2,724 crore as of the end of 2019-20 is also proposed to be converted to perpetual debt.

For prepayment of outstanding debt, expected recoveries from claims so far not recognised by the company in the books of about Rs 700 crore are also proposed to be used.

As part of the resolution plan, no concession in the rate of interest has been proposed. A haircut is also unlikely in the principal repayment.

There will also be no pooling of security, and the security of each lender will continue with it exclusively. An interest moratorium up to 30 September 2021, is also likely. The unpaid interest for the moratorium period up to 31 August 2020, and interest till 30 September 2021, on all fund based facilities may be converted to a funded interest term loan.

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Also read: Shapoorji Pallonji Infra to sell 317 MWp of operational solar assets to KKR

Also read: Understanding the asset monetisation push

The Shapoorji Pallonji (SP) Group is looking to monetise its assets and may sell its stake partly or fully in at least three of its group companies, including Sterling, Eureka Forbes, Afcons Infrastructure, and Wilson Solar, as a part of the one time debt restructuring package being discussed with the lenders. SP Group plans to raise about Rs 10,332 crore through this asset sale. Additionally, Inter Corporate Deposits (ICDs) given to the SP Group companies are also likely to be realised, primarily from its real estate joint venture, SD Corp, and other entities forming part of Shapoorji Pallonji and Company Private Ltd's real estate portfolio through monetisation of their project assets. Last year in September, the company had sought relief to restructure its Rs 10,900 crore debt under the resolution framework for Covid-19 pandemic related stress announced by the Reserve Bank of India (RBI). Sources told the media that the SP Group is in talks with the lenders and likely to finalise the resolution package soon.4th Indian Cement Review Conference 202117-18 March Click for event info Proceeds from the proposed monetisation of assets will be used for the prepayment of loans. Proceeds from ICDs aggregating to about Rs 836 crore are also expected to be used for the prepayment of the debt, and any balance amount would be used for company operations. As a part of the one time restructuring, promoter debt of Rs 2,724 crore as of the end of 2019-20 is also proposed to be converted to perpetual debt. For prepayment of outstanding debt, expected recoveries from claims so far not recognised by the company in the books of about Rs 700 crore are also proposed to be used. As part of the resolution plan, no concession in the rate of interest has been proposed. A haircut is also unlikely in the principal repayment. There will also be no pooling of security, and the security of each lender will continue with it exclusively. An interest moratorium up to 30 September 2021, is also likely. The unpaid interest for the moratorium period up to 31 August 2020, and interest till 30 September 2021, on all fund based facilities may be converted to a funded interest term loan. Image Source Also read: Shapoorji Pallonji Infra to sell 317 MWp of operational solar assets to KKR Also read: Understanding the asset monetisation push

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