Shapoorji Pallonji Group Seeks ₹3,500 Crore to Service Debt

The Shapoorji Pallonji Group is seeking ₹3,500 crore ($365 million) to meet a debt payment owed by its financing arm, Porteast Investment. To secure the capital, the group is negotiating with lenders to exercise a greenshoe option on an existing ₹21,350 crore facility. Deutsche Bank AG is expected to provide the majority of these funds.

As part of the negotiations, the group has requested to extend the payment deadline to the end of October and seek a six-month extension on Porteast's 40% loan-to-value limit. This financial pressure coincides with an internal leadership struggle at Tata Sons regarding a potential initial public offering.

Tata Sons Chairman Natarajan Chandrasekaran and the board support a listing to comply with Reserve Bank of India requirements. However, Tata Trusts Chairman Noel Tata opposes the IPO, arguing the company should remain private. As an alternative, Noel Tata has proposed a share buyout that would generate at least ₹25,000 crore for the Shapoorji Pallonji Group, which holds an 18.4% stake in Tata Sons.