The Shapoorji Pallonji (SP) Group has cleared around ₹3,500 crore in bond repayments after a majority of existing lenders agreed to provide additional financing, helping the Mistry family-owned conglomerate avoid a possible default.
As per a report by Moneycontrol, the repayment gives short-term relief to the group, which had been working with lenders to meet the obligation just two months after completing a ₹21,500-crore refinancing exercise in July.
The payment was linked to bonds issued under an earlier financing arrangement and was expected to be settled through funds raised during the refinancing process. Failure to meet the September-end deadline could have triggered an event of default under the group’s financing agreements.
Fresh loans help meet repayment deadline
The latest arrangement was completed after a majority of lenders agreed to extend fresh loans, allowing SP Group to clear the outstanding bond obligations within the required timeframe.
However, the repayment does not represent a similar reduction in the group’s total debt, as the dues have effectively been managed through additional borrowing.
The September obligation was connected to financing raised through Porteast Investment, an SP Group entity that raised about ₹28,500 crore through bonds in May 2025. The borrowing was backed by the group’s stake in Tata Sons and carried an annual yield of around 19.75%.
Refinancing remains key to debt management
In July 2026, SP Group completed a separate refinancing exercise worth approximately ₹21,500 crore to replace existing promoter-level borrowings.
The transaction included ₹15,200 crore of three-year rupee-denominated bonds issued by Eqyizen Investment at a yield of 18.95% and a $650-million bond issued by Mercury Finance at a yield of 14.5%.
The refinancing was aimed at addressing near-term repayment commitments and giving the group more time to work on a broader solution for its debt obligations.
The latest repayment highlights SP Group’s continued dependence on refinancing measures to manage its liabilities. The group has previously explored ways to lower its borrowing costs from around 18-19% to nearly 12% through future refinancing once restrictions on early repayment under the July transaction end.
Lenders continue to seek greater clarity on the group’s long-term debt repayment strategy, with several financing arrangements backed by its Tata Sons holding.
