Shapoorji Pallonji gets over $4 bn in investor commitments for debt sale
News Mania Desk / Piyal Chatterjee / 21st March 2025

India’s Shapoorji Pallonji Group has secured investor commitments of more than $4 billion for its debt sale in April, surpassing its funding target, two sources familiar with the matter said on Friday.The group, which caters to sectors including construction and real estate, plans to raise $3.2 billion to $3.3 billion through the bond issue, with private credit funds expected to account for a bulk of the subscriptions, the sources said.
Foreign private credit funds Ares Management and Farallon Capital Management are likely to be the largest investors for the issue, while Cerberus Capital Management, Davidson Kempner Capital Management, One Investment Management and Varde Partners are among other big investors, they said.
According to the individuals, who asked to remain anonymous because they are not authorized to speak to the media, investors may bid for between 50% and 75% of the issue overall.
The bond’s pre-payment clause, which allows for redemption within three years, essentially shortens the bond’s anticipated four-year maturity.
“The coupon on the bond issue is close to being finalised between 18% and 20%,” one of the sources said. “This yield is very lucrative and is drawing heavy interest from private credit funds.”
The bond is expected to be secured by shares of Tata Sons that are held by the group through Sterling Investment Corp, they added.
The acquisition was arranged by Deutsche Bank alone. According to the sources, the money will mostly be utilized to refinance current debt. An email requesting comment was not answered by Varde Partners, Cerberus Capital Management, One Investment Management, Shapoorji Pallonji Group, or Farallon Capital Management. Davidson Kempner Capital Management, Ares Management, and Deutsche Bank all declined to comment.