The Shapoorji Pallonji (SP) Group is facing another major debt repayment deadline, with around ₹3,500 crore due by the end of September, according to a report by Moneycontrol citing people familiar with the matter.
Failure to make the payment could potentially be treated by lenders as an event of default.
The obligation relates to an earlier financing arrangement and was expected to be settled using proceeds from the group’s ₹21,500-crore refinancing completed in July.
However, not all funds earmarked for the earlier bondholders were distributed when the refinancing closed, with a portion retained by the group for other requirements.
₹3,500 crore payment could improve collateral cover
It remains unclear whether the SP Group has secured the funds needed to meet the September deadline. Lenders, however, expect the repayment to strengthen the group’s collateral position.
The group’s loan-to-value ratio is currently estimated at around 40% and could fall to approximately 32% after the repayment, according to people familiar with the matter.
The July refinancing was raised primarily against the group’s holding in Tata Sons. It included approximately ₹15,200 crore of three-year rupee-denominated zero-coupon bonds issued by Eqyizen Investment at a 18.95% yield and a $650-million dollar bond issued by Mercury Finance at a 14.5% yield.
Tata Sons stake remains central to SP Group borrowings
The SP Group has repeatedly leveraged its Tata Sons stake to raise funds. In 2021, Sterling Investment raised around $2.6 billion against its approximately 9% holding in Tata Sons.
Another ₹14,300 crore was raised by Goswami Infratech in 2023 through zero-coupon NCDs backed by Cyrus Investments’ Tata Sons shares.
The group also secured about $3.4 billion in 2025 through another private-credit refinancing carrying a yield of roughly 19.75%.
The Mistry family owns about 18.4% of Tata Sons, making the SP Group its largest minority shareholder. The stake, held mainly through Sterling Investments and Cyrus Investments, has remained crucial to the conglomerate’s debt-financing strategy.
