Shapoorji Pallonji Group Starts $2.5 Bn Debt Refinancing Talks: Here’s What to Expect

Goswami Infratech Private Limited, a key holding company of the Shapoorji Pallonji Group, has reportedly begun the process to refinance $2.5 billion (₹22,750 crore) of debt, which is set to mature in April. The debt is backed by the group’s stakes in Tata Sons.

Informal discussions with investors on the refinancing began last week, according to a report by The Economic Times. The transaction is expected to follow a structure similar to the group’s previous deal. The company had raised the debt in June 2023 at a yield of 18.75%, making it one of the costliest private credit deals backed by Indian promoter equity at the time.

Sources cited by the newspaper said the latest fundraising has been launched in the domestic market after initial outreach to overseas private credit investors. It is being pitched to both foreign banks and domestic investors, with pricing likely to be finalised by the end of March.

The funds raised are expected to be used to retire about $1.7 billion of existing high-cost debt at Goswami Infratech. The company had earlier repaid parts of the $2.5 billion facility through asset monetisation and capital market transactions, including the listing of Afcons Infrastructure and the sale of port assets such as Gopalpur Port and Dharamtar Port.

In November, the group returned to investors with revised terms for the Goswami bonds, proposing to align the optional redemption date with the final maturity in April 2026, instead of an earlier call option, according to the report.

The report also noted that pricing for the proposed refinancing will be linked to ongoing discussions between Shapoorji Pallonji Group and Tata Sons over the divestment of their over 18% stake in the latter. The talks began last year amid SP Group’s push for the public listing of Tata Sons.

A resolution with Tata Sons could help lower borrowing costs for the Mistry family-led company. In the absence of such clarity, pricing is expected to remain close to levels seen in previous transactions, reflecting the group’s high cost of capital.

An earlier report suggesting that Goswami Infratech’s refinancing could carry interest rates as high as 21.75% was rejected by the SP Group. Reuters had reported that Goswami Infratech planned to raise up to ₹25,000 crore ($2.77 billion) through a two-year zero-coupon bond issue. Deutsche Bank is arranging the fundraise.

SP Group called the report “grossly incorrect and totally misleading,” stating that the bonds are being refinanced well ahead of their due dates.

The group had also completed a separate ₹28,500 crore fundraising in May 2025, one of the largest private credit transactions in India, led by Porteast Investment with three-year bonds priced at 19.75%.