Shapoorji Pallonji Group completed one of the largest private credit deals in the country on Monday. As part of this transaction, the group raised approximately INR 15,100 crore (equivalent to USD 1.6 billion) to refinance debt. This move demonstrates the willingness of domestic investors to finance large, highly leveraged deals despite global market instability.
Domestic investors, including InCred Capital Financial Services, DSP Finance Pvt Ltd, and IIFL Capital Services Ltd, subscribed to the bonds but requested anonymity. They were interested in the prospect of monetizing an 18.4% stake in Tata Sons Pvt Ltd, which could potentially unlock billions in liquidity.
International investors, including Farallon Capital Management, Davidson Kempner Capital Management, and Cerberus Capital Management, each acquired bonds worth approximately USD 175–200 million. Deutsche Bank AG acted as the sole arranger for both tranches, securing the largest share of the debt through two operations—one in dollars and one in rupees.
The raised funds will be used to refinance a debt of INR 15,500 crore issued by Goswami Infratech in the form of three-year zero-coupon bonds with a yield of 18.95 percent. This operation provides SP Group, an infrastructure and real estate conglomerate, with necessary liquidity after the company twice extended the debt maturity with Goswami.
Furthermore, the group previously raised USD 650 million last Thursday through a three-year dollar bond loan with a yield of 14.5 percent. This latest round is part of SP Group's overall plan to raise INR 255 billion, with an additional USD 350 million planned to be raised in the next six months. These borrowings are secured by shares of the flagship company Afcons Infrastructure Ltd. and Tata Sons, and the bond agreement obligates the company to repay INR 135 billion within 24 months.
Avendus Future Leaders Fund III (FLF), a private strategic fund of Avendus Group, has made an investment of approximately 140 crore rupees in Parag Parikh Financial Advisory Services (PPFAS).
Furthermore, the fund announced that it plans to reach its final close at around 1,800 crore rupees by the end of the current month.
The investment in PPFAS was made through a secondary transaction, in which FLF acquired shares from promoters Anil Parag Parikh and Kushbu Joshi. Founded in 1992, PPFAS is an equity-focused asset management company.
Ratesh Chandra, Managing Director of Avendus Future Leaders Fund, stated that the company views PPFAS as well-positioned to capitalize on structural growth opportunities in India's asset management industry, given the growing preference of Indian households for financial investments and increasing investor participation in capital markets.
According to FLF, this investment in PPFAS aligns with the fund's strategy of partnering with high-quality, market-leading enterprises possessing strong fundamentals and long-term growth potential.
PPFAS's flagship product, the Parag Parikh Flexi Cap Fund (PPFCF), manages approximately 1.43 lakh crore rupees in assets under management (AUM). The company reported that PPFCF has demonstrated a Compound Annual Growth Rate (CAGR) of about 18% over the last decade.
Nilam Parag Parikh, Chairman and CEO of PPFAS, noted that the company's transition to a full-service asset management platform covering mutual funds, wealth management, GIFT City funds, private equity, and National Pension System (NPS) marks a significant milestone in the company's development.
He also emphasized that, in PPFAS's view, Avendus FLF shares their long-term vision and values, and that this partnership will strengthen their platform, enhance capabilities, and allow them to deliver greater value to clients, investors, and other stakeholders.
Regarding the final close of Fund III, Avendus reported that the investment vehicle has already deployed 30% of its capital and expects to make five to six more investments over the next 12 months.
FLF manages a consolidated AUM exceeding 4,000 crore rupees across all its funds and focuses on investing in late-stage market leaders with high growth potential. Its portfolio includes Lenskart Solutions, La Renon Healthcare, Sagility, SBI General Insurance, Licious, Juspay, Zeta, Veritas Finance, Avanse Financial Services, Aragen Life Sciences, and IL JIN Electronics.
The Indian group Shapoorji Pallonji has commenced planned refinancing of INR 25,500 crore ($2.7 billion) through the sale of local currency bonds. This move helped restore investor confidence after several months of uncertainty regarding the group's ability to meet upcoming debt maturities.
One of the group's subsidiaries plans to issue rupee-denominated bonds worth approximately INR 15,000 crore. These bonds will be offered to a group of investors, including Farallon Capital Management, Davidson Kempner Capital, and Cerberus Capital Management. Information about the deal was provided by representatives who wished to remain anonymous as the details are confidential. The collected funds are intended for refinancing the debt of Goswami Infratech Pvt.
Furthermore, the group secured $650 million through a three-year dollar bond loan closed on Friday at an interest rate of 14.5 percent. Deutsche Bank AG acted as the sole arranger for both tranches of the offering and, according to sources, may invest around $400 million, making it one of the largest participants.
This capital raise provides the infrastructure and real estate conglomerate with necessary liquidity, especially after the company twice extended the maturity of Goswami's debt. It also alleviates concerns about the possibility of refinancing short-term obligations following lengthy negotiations with creditors. Investors are also closely watching the group's 18.4% stake in Tata Sons Pvt., as delays in unlocking the value of this asset have complicated refinancing efforts.
Ajay Mangluni, CEO of Capri Global Capital Management, noted that the successful completion of the Shapoorji deal would be another milestone for India's private credit market and would boost investor confidence. He added that some local funds are showing interest in the deal due to some transparency regarding Tata Sons.
Previously, refinancing delays had caused concern among investors, and some holders were offering Goswami's unsecured debt obligations at around 90 percent of par on the secondary market. Although reports of transactions at such levels were absent, last week there were offers near par following progress in refinancing, according to insiders. The last recorded secondary market transaction took place on June 16, when approximately INR 200 crore of Goswami NCDs were sold at a price of INR 165.33 per unit, according to the National Stock Exchange of India. The BSE Ltd. and NSE exchanges only display completed trades, with the latter being the more frequently used platform. Buy and sell offers that have not yet resulted in a deal are often discussed confidentially.
The three-year zero-coupon rupee bonds of SP Group will be priced with a yield of 18.95 percent. Existing investors will receive a small discount, leading to an effective yield of approximately 19.05 percent. The bonds also include a green-shoe option. The loans are secured by shares of the group's firm Afcons Infrastructure Ltd. and Tata Sons, in which SP Group holds an 18.4% stake. According to the credit agreement, the company must repay INR 135 billion within 24 months.
