Shapoorji Pallonji Group seeks $200 million in private credit to ease debt burden: Report
The Shapoorji Pallonji Group is seeking $150 million to $200 million through private credit as it faces mounting debt repayments and explores ways to unlock value from its 18.4% stake in Tata Sons. A proposed Rs 25,000 crore share buyout could provide the group with liquidity while allowing Tata Sons to remain privately held.
- Oct 29, 2026,
- Updated Oct 29, 2026 12:32 PM IST
The Shapoorji Pallonji Group is looking to raise $150 million to $200 million through private credit as the Indian conglomerate faces mounting debt obligations and seeks to ease financial pressure on its businesses, Bloomberg News reported.
The group plans to raise the funds by issuing rupee-denominated bonds similar to those initially sold by its unit, Eqyizen Investment Pvt., in July, sources told Bloomberg.
Around half of the proceeds will be used to repay creditors of Porteast Investment Ltd., another group entity, while the remainder will go towards other debt obligations across the conglomerate, they said. Discussions are at an early stage, and the final amount and terms could change. The group is targeting completion by mid-November.
The proposed financing is expected to help reduce debt at Porteast and ease pressure on the group's loan-to-value ratio, which measures debt against the value of its assets.
Previous borrowing highlights repayment pressure
The latest fundraising plan follows the group's borrowing of approximately Rs 44,500 crore?
The group raised around Rs 44.5 billion, or $467 million, in September through Eqyizen and dollar bonds issued by another unit, Mercury Finance Co., according to the people familiar with the matter. The proceeds were used to meet amortisation payments due at Porteast.
The additional fundraising underscores the financial pressure on the conglomerate as debt repayments approach and efforts to monetise its assets remain prolonged.
MUST READ: Noel Tata pushes for strict scrutiny over major capital investments by Tata Sons
Tata Sons buyback proposal could offer liquidity
A potential route to easing the group's liquidity constraints has emerged through a proposal to monetise part of its holding in Tata Sons. Tata Trusts Chairman Noel N Tata placed the SP Group's proposal before the Tata Sons board in September 2026, potentially offering an alternative to a public listing of the holding company.
Under the proposal, Sterling Investments Corporation Pvt. Ltd. and Cyrus Investments Pvt. Ltd., which hold the SP Group's Tata Sons shares, would sell enough shares to generate gross proceeds of at least Rs 25,000 crore. The transaction would be completed in two tranches over 18 months, with the valuation determined under Rule 11UA of the Income Tax Rules, 1962.
The plan would require Tata Sons to initiate a selective capital-reduction process before the National Company Law Tribunal (NCLT). No final agreement has been announced.
The SP Group, controlled by the Mistry family, holds approximately 18.4% of Tata Sons, making it the holding company's second-largest shareholder. The stake is a significant asset but remains difficult to monetise because Tata Sons is unlisted.
ALSO READ: ‘Tata is being criminally destroyed’: Rahul Gandhi accuses business leaders of staying silent
The proposal comes after the Reserve Bank of India rejected Tata Sons' application to surrender its registration as a core investment company, reviving uncertainty over whether the company may have to comply with listing requirements applicable to upper-layer non-banking financial companies.
Noel Tata has also asked the board to explore funding options, including internal cash flows, sales of listed investments and potential offers for sale linked to the listing of operating companies.
A negotiated buyout could provide the SP Group with liquidity while allowing Tata Sons to remain privately held. However, the transaction would require scrutiny of valuation, shareholder treatment, funding availability and regulatory approvals.
For the SP Group, the proposed buyout could help address near-term financial obligations as it continues to manage debt repayments and seeks to unlock value from its Tata Sons investment.
The Shapoorji Pallonji Group is looking to raise $150 million to $200 million through private credit as the Indian conglomerate faces mounting debt obligations and seeks to ease financial pressure on its businesses, Bloomberg News reported.
The group plans to raise the funds by issuing rupee-denominated bonds similar to those initially sold by its unit, Eqyizen Investment Pvt., in July, sources told Bloomberg.
Around half of the proceeds will be used to repay creditors of Porteast Investment Ltd., another group entity, while the remainder will go towards other debt obligations across the conglomerate, they said. Discussions are at an early stage, and the final amount and terms could change. The group is targeting completion by mid-November.
The proposed financing is expected to help reduce debt at Porteast and ease pressure on the group's loan-to-value ratio, which measures debt against the value of its assets.
Previous borrowing highlights repayment pressure
The latest fundraising plan follows the group's borrowing of approximately Rs 44,500 crore?
The group raised around Rs 44.5 billion, or $467 million, in September through Eqyizen and dollar bonds issued by another unit, Mercury Finance Co., according to the people familiar with the matter. The proceeds were used to meet amortisation payments due at Porteast.
The additional fundraising underscores the financial pressure on the conglomerate as debt repayments approach and efforts to monetise its assets remain prolonged.
MUST READ: Noel Tata pushes for strict scrutiny over major capital investments by Tata Sons
Tata Sons buyback proposal could offer liquidity
A potential route to easing the group's liquidity constraints has emerged through a proposal to monetise part of its holding in Tata Sons. Tata Trusts Chairman Noel N Tata placed the SP Group's proposal before the Tata Sons board in September 2026, potentially offering an alternative to a public listing of the holding company.
Under the proposal, Sterling Investments Corporation Pvt. Ltd. and Cyrus Investments Pvt. Ltd., which hold the SP Group's Tata Sons shares, would sell enough shares to generate gross proceeds of at least Rs 25,000 crore. The transaction would be completed in two tranches over 18 months, with the valuation determined under Rule 11UA of the Income Tax Rules, 1962.
The plan would require Tata Sons to initiate a selective capital-reduction process before the National Company Law Tribunal (NCLT). No final agreement has been announced.
The SP Group, controlled by the Mistry family, holds approximately 18.4% of Tata Sons, making it the holding company's second-largest shareholder. The stake is a significant asset but remains difficult to monetise because Tata Sons is unlisted.
ALSO READ: ‘Tata is being criminally destroyed’: Rahul Gandhi accuses business leaders of staying silent
The proposal comes after the Reserve Bank of India rejected Tata Sons' application to surrender its registration as a core investment company, reviving uncertainty over whether the company may have to comply with listing requirements applicable to upper-layer non-banking financial companies.
Noel Tata has also asked the board to explore funding options, including internal cash flows, sales of listed investments and potential offers for sale linked to the listing of operating companies.
A negotiated buyout could provide the SP Group with liquidity while allowing Tata Sons to remain privately held. However, the transaction would require scrutiny of valuation, shareholder treatment, funding availability and regulatory approvals.
For the SP Group, the proposed buyout could help address near-term financial obligations as it continues to manage debt repayments and seeks to unlock value from its Tata Sons investment.