SP Group bonds fail to get a lift as market takes it step by step

Mumbai: Despite a recent development that could potentially help the Shapoorji Pallonji Group unlock liquidity via its Tata Sons stake, the SP Group's 14.5% senior secured dollar bonds maturing in July 2029 have held steady. These bonds were trading at around $100.226 on Tuesday, slightly lower than their previous close of $100.264.

The regulatory push to compel Tata Sons to list its shares is seen as a step towards monetizing the SP Group's 18% stake in Tata Group. However, the market's perception of this monetization process as lengthy has prevented any significant rally in the bonds' price. A market source noted that while the development is positive for the SP Group, it is still a long-drawn process before monetization translates into an actual liquidity event.

Trading volumes in the rupee bonds also remained subdued, limiting any immediate price reaction. The SP Group's rupee bonds were issued at par with an 18.75% yield. The bonds were underwritten by Mercury Finance Company, a Mauritius-based special purpose vehicle, as part of the group's recent dual-currency refinancing. The proceeds were primarily used to subscribe to non-convertible debentures issued by Eqyizen Investment, a promoter-group entity.

The offshore notes were a part of a ₹21,350 crore financing completed by the group through Eqyizen Investment to refinance existing debt and meet capital requirements.