SP Group arm to tap bond pipeline to raise Rs 1,500 crore

Mumbai: The Shapoorji Pallonji Group's financing unit, Eqyizen Investment, is considering raising around ₹1,500 crore through a tap issue of its existing rupee bonds, as the conglomerate seeks greater flexibility in deploying fresh borrowings amid efforts to refinance debt and address liquidity requirements, people familiar with the discussions said.

The fundraising is likely to take place around November 23, with proceeds to be used for repayment of existing bondholders and funding the requirements of group entities, one of the people said.

The company is considering the tap issue, or selling additional bonds from the existing series, even as it has approached bondholders informally to relax covenants governing the use of proceeds from new borrowings.


Read more: Can Nifty hit 28,000 before 2028? Citi raises target, sees $12 billion inflows

Under the existing terms, 75% of proceeds from any new debt must be used to repay holders of bonds issued by Porteast Investment, another group entity, leaving only 25% available for other purposes.

The group is seeking to increase the portion available for uses other than bond repayment to at least 50%, the people said.

A Shapoorji Pallonji Group spokesperson did not respond to a request for comment.

In July, Eqyizen raised ₹21,350 crore through three-year, zero-coupon rupee-denominated bonds carrying an annualised yield of 18.95% with the bonds maturing in July 2029.

Read more: Samvat 2083 stock picks: 10 ideas from India’s top brokerages for the next Diwali

In October, Eqyizen raised ₹4,450 crore more through a tap of the same rupee bond series, while another group company, Mercury Finance, raised $125 million through a tap of its existing dollar bonds. The proceeds were used to fund a mandatory prepayment of around ₹3,500 crore to Porteast bondholders.

Porteast had in May 2025 raised ₹28,500 crore through non-convertible debentures carrying a yield of 19.75%. The group's refinancing exercise is aimed at managing these high-cost borrowings and meeting obligations across its financing entities.

The proposed fundraising comes alongside efforts by the group to unlock value from its 18.4% stake in Tata Sons, the holding company of the Tata Group.

Tata Trusts director Noel Tata has asked Tata Sons management to present a detailed assessment of the Shapoorji Pallonji Group's ₹25,000 crore liquidity proposal at the board meeting scheduled for November 26, ET reported on October 31.