SP Group’s $1.2 Billion Deadline Looms Large
The Shapoorji Pallonji (SP) Group is staring at a major financial crunch, with a $1.2 billion (around ₹10,000 crore) debt repayment due by December 2025. The conglomerate, which holds a little over 18% in Tata Sons, has pledged its entire stake as collateral — a move that underlines the scale of the pressure on the Mistry family-led group.
People familiar with the matter told Axpert Media that this tranche covers both principal and interest payments and forms part of the $3.2 billion refinancing the group completed earlier. The overall promoter-level debt of the Mistry family reportedly stands between ₹25,000 and ₹30,000 crore — about half of SP Group’s total debt, which is estimated at ₹55,000–60,000 crore.
Selling Tata Sons Stake Not So Simple
Here’s the tricky part: even though the Tata Sons shares have been pledged, lenders can’t easily invoke the collateral. That’s because Tata Sons is unlisted, and its shares can’t be sold to outsiders without the Tata Group’s consent.
So far, there’s no sign that the Tata Group is willing to buy back the SP stake — either fully or partially. That leaves the lenders in a tough spot and the SP Group scrambling for other ways to raise funds or refinance the loans.
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Public Listing: A Possible Way Out
For years, the Mistry family has pushed for a public listing of Tata Sons, arguing that it would provide a transparent, market-driven exit route for all shareholders. A listing would also mean a better tax outcome — only 12% capital gains tax, compared to nearly 36% if Tata Sons were to buy back the stake directly.
“Listing Tata Sons is the fairest and most value-accretive solution,” said one person aware of the group’s position. But with no indication from the Tata Group, that solution remains theoretical for now.
Lenders Seek More Assurance
According to sources, lenders are demanding additional collateral or a clearer roadmap on SP Group’s asset monetisation — which could include the sale of infrastructure holdings, real estate, or minority stakes in subsidiaries. The $1.2 billion debt, they said, is fully backed by SP Group assets, including the Tata Sons shares.
But as the December deadline approaches, questions remain about whether the group can mobilise funds quickly enough to avoid another refinancing scramble.
How the Debt Built Up
A big chunk of the debt dates back to 2021, when Sterling Investments Pvt Ltd, one of SP’s promoter entities, raised $2.6 billion from global investors Ares Management and Farallon Capital. Those loans, with a tenure of three and a half years, are now nearing maturity. Sterling Investments holds just over 9% in Tata Sons.
Earlier this year, the group refinanced about $3.2 billion through global asset managers Davidson Kempner and Cerberus Capital, while Ares and Farallon rolled over parts of their maturing debt.
SP Group also explored refinancing through Power Finance Corporation (PFC) at a lower rate, but the proposal was reportedly rejected by PFC’s investment committee for unspecified reasons.
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Asset Sales: Some Relief, But Not Enough
To ease its debt burden, SP Group has already monetised some assets. Its infrastructure arm, Goswami Infratech, repaid around ₹14,300 crore using proceeds from Afcons Infrastructure’s IPO and the sale of its stake in Gopalpur Port to the Adani Group.
While those moves helped reduce short-term pressure, the looming December deadline suggests the debt mountain still towers high.
The Bigger Picture
The SP Group’s financial struggles are unfolding against the backdrop of its long and complex relationship with the Tata Group. Once a trusted partner and one of Tata Sons’ oldest shareholders, the Mistry family’s ties with the conglomerate soured after Cyrus Mistry’s ouster as Tata Sons chairman in 2016 — triggering one of India’s biggest corporate battles.
Now, nearly a decade later, that partnership has turned into a financial lifeline — one that could determine whether the century-old Shapoorji Pallonji Group can steady itself or face another round of restructuring.
Disclaimer:
This report is based on information sourced from individuals familiar with the matter and publicly available financial filings. Axpert Media has reached out to the Shapoorji Pallonji Group for official comment, which was unavailable at the time of publication.
