SP Group to raise $125 million via tap issue, Rs 3,250 crore in rupee bonds
In a significant financial move, Shapoorji Pallonji Group plans to generate $125 million through a tap issue of current dollar bonds, targeting an impressive ₹3,250 crore via unrated rupee-denominated bonds for refinancing purposes. This capital-raising endeavor is likely to finalize by Thursday, with payments assigned for October 1. The influx of interest has led to oversubscription in recent…
Mumbai: The Shapoorji Pallonji Group aims to raise $125 million by issuing a tap on its existing three-year dollar bonds maturing in July 2026. These bonds will have a 14.5% coupon rate and a remaining tenor of approximately two years and ten months, with a yield to maturity of around 14%, according to sources familiar with the transaction. The bond issuance is expected to finalize by Thursday.
In addition to the dollar bonds, the SP Group plans to issue about ₹3,250 crore in unrated rupee-denominated bonds at an 18.95% yield. This debt offering also has a similar tenor of two years and ten months. This move is aimed at refinancing approximately ₹3,500 crore of bonds currently maturing on Wednesday, the sources revealed.
The fundraising effort significantly outpaced investor demand, resulting in the group narrowing the allocation to investors. The SP Group had previously raised ₹15,200 crore through three-year zero-coupon bonds in July at an 18.95% yield. Earlier this year, Mercury Finance raised $650 million through bonds with a 14.5% coupon rate.
These funds will be utilized to refinance the bonds issued by the group's financing arm, Porteast Investment. Porteast had raised ₹28,500 crore in May 2025, with the bonds priced at a 19.75% coupon rate.
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