SP Group Unit Engages Global Investors for Major Bond Issuance
Mumbai — Goswami Infratech, a key subsidiary of the Shapoorji Pallonji Group, is engaging some of the world’s leading credit investors as it prepares for a significant bond sale expected to conclude by the end of January.
The company has held discussions with major institutions during recent non-deal roadshows. These interactions were aimed at presenting project details and gauging investor appetite for the high-value issuance.
Meetings reportedly included global investment firms such as PIMCO, BlackRock, and Vanguard. These sessions helped outline the bond structure and the group’s broader financial roadmap.
The company is reportedly planning to raise around 250 billion rupees through a two-year zero-coupon bond issue. The proposed yield for the issuance is expected to be around 19.75%.
This yield aligns with what another SP Group entity, Porteast Investment, offered earlier this year. That fundraising, amounting to 286 billion rupees, was marked as one of India’s largest bond sales to date.
Talks with investors remain at an initial stage. No firm investment commitments have been finalised as discussions are still ongoing.
The funds raised will be utilised for refinancing existing debt obligations. This includes the repayment of high-yield notes worth 88.15 billion rupees maturing in April 2026.
The proceeds may also go toward repaying an additional loan. The remaining amount will be allocated for other corporate and debt-related needs within the group.
Goswami Infratech has already repaid over one-third of its earlier bond, according to available rating updates. Care Ratings currently maintains a BB- rating on the existing papers.
The new bond issue is expected to be secured by a significant asset held by the SP Group. This includes the group’s 9.2% stake in Tata Sons, which is held through its subsidiary, Cyrus Investments.
This substantial equity holding has long been considered one of the group’s most valuable assets. Pledging it adds additional credibility to the upcoming fundraising process.
The Shapoorji Pallonji Group has been actively working on strengthening its financial position in recent years. This has included debt restructuring, strategic refinancing, and portfolio optimisation.
The group’s ongoing efforts reflect its broader aim to reduce leverage. It also seeks to create a more sustainable capital structure across its diverse business operations.
Investor engagement is expected to increase over the coming weeks. Financial advisors are likely to refine the terms as feedback from global institutions comes in.
A successful completion of this bond sale would mark another significant capital-raising milestone for the group. It may also signal growing investor confidence in India’s high-yield corporate debt market.
Global investment activity in Indian corporate bonds has risen steadily. High-yield instruments, especially those backed by strong collateral, continue to attract international interest.
Goswami Infratech’s strategy reflects this broader trend. The company is tapping into a global investor base seeking higher returns amid shifting global interest-rate conditions.
The conclusion of the transaction is expected by late January. The final size and yield of the issue may be influenced by market conditions and investor sentiment.
The outcome of this fundraising effort will be watched closely across India’s financial sector. It may shape future expectations for large corporate issuances and investor behaviour in the quarters ahead.
