SP Group seeks 3-6 months to repay Rs 3,500 crore bond

Shapoorji Pallonji Group is in talks with lenders to extend repayment of about ₹3,500 crore due September 30 on a zero-coupon bond issued by its financing arm Porteast Investment, people familiar with the matter said.

The group is seeking an extension of three to six months as it continues to work on refinancing its debt, the people said. Proceeds from financing transactions completed in July were expected to help service the maturity, but the group is now seeking additional time, they said.

A SP Group spokesperson did not immediately respond to request for comment.


Porteast had raised ₹28,500 crore through NCDs in May 2025, backed by a pledge of a 9.2% stake in Tata Sons. The bonds were originally priced to yield 19.75%.

The repayment extension comes as SP Group's dollar bond has gained in the secondary market, with investors tracking developments around the group's Tata Sons holding and its refinancing plans.

The 3-year dollar bond issued by SP Group entity Mercury Finance in July was last quoted at about 101.625 cents to the dollar, compared with an issue price of 100, according to Bloomberg. The bond was issued at a 14.5% yield and was quoted at around 12.5%-13% in the secondary market.

"The rise in the dollar bond's price shows that investors are now accepting a substantially lower yield than the 14.5% at which the security was issued," said a source.

The bond was part of the group's refinancing programme, where in July, SP Group raised $650 million through the Mercury Finance dollar bond, alongside rupee zero-coupon bonds issued by Eqyizen Investment at a yield of 18.95%. The proceeds were raised largely against the group's Tata Sons holding.

The secondary-market move comes as investors track SP Group's refinancing plans and developments around its stake in Tata Sons.