Shapoorji Pallonji Weighs $2 Billion Asset Sales: Report
April 12, 2023: Shapoorji Pallonji, one of India’s leading construction and infrastructure companies, is reportedly considering selling assets worth $2 billion in a bid to reduce its debt and improve its financial position.
According to sources, the company has been exploring various options to raise capital, including selling stakes in some of its subsidiaries and divesting some of its non-core assets.
The move comes after the company faced financial difficulties due to the ongoing economic slowdown and the impact of the COVID-19 pandemic on the construction and real estate sectors.
Shapoorji Pallonji has been struggling to repay its debt and has been seeking ways to raise funds to support its operations and meet its financial obligations.
Sources suggest that the company has identified several assets that it could potentially sell, including some of its real estate properties, renewable energy projects, and a stake in its engineering and construction subsidiary, Sterling and Wilson.
The potential sale of assets worth $2 billion is expected to provide a significant boost to the company’s financial position and enable it to reduce its debt burden.
However, it is also likely to have an impact on the company’s operations and future growth plans, as it may have to prioritize its focus on core businesses and divest non-core assets.
Shapoorji Pallonji is one of India’s oldest and most respected construction and infrastructure companies, with a history spanning over 150 years.
The company has a diverse portfolio of businesses, including construction, engineering, real estate, and infrastructure development, and has operations in India and several other countries.
The news of the potential asset sale has been met with interest from investors and the business community, with many keen to see how the company navigates the challenging economic environment and strengthens its financial position.
Headquartered in Mumbai, SP Group is a conglomerate that was established in 1865. The company has diversified business interests, including engineering and construction, real estate, textiles, home appliances, shipping, and biotechnology, among others.
With over 150 years of experience, SP Group is considered one of India’s oldest and most respected companies.
On the other hand, Afcons is a leading player in the engineering and construction industry, specializing in marine infrastructure, tunnels, bridges, and roads.
According to a Bloomberg report, the company has undertaken projects in over 25 countries in Asia, Africa, and the Middle East, cementing its position as a global player in the sector.
According to a recent report by ET, SP Group is reportedly in discussions with lenders to secure a loan of $1.75 billion by pledging 50% of its stake in Tata Sons.
The conglomerate, which is the largest shareholder in Tata Sons, is seeking to raise funds in order to repay some of its debt obligations and provide cash infusion to its operating companies.
The report suggests that SP Group has already pledged nearly 9% of its 18.37% stake in Tata Sons. With this latest transaction, the group’s entire stake, valued at approximately Rs 94,000 crore, will be pledged to lenders. The lenders are said to include two foreign banks as well as various overseas hedge and credit funds.
The move comes as SP Group continues to grapple with financial challenges due to the impact of the ongoing economic slowdown and the COVID-19 pandemic.
The conglomerate is seeking to restructure its debt and improve its financial position, and has been exploring various options to raise capital, including asset sales and stake divestments.
This latest development is likely to have significant implications for SP Group’s future operations and strategic plans, and will be closely watched by investors and the business community alike.
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