Shapoorji company Goswami Infratech seeks time from bondholders to list Afcons Infrastructure

A closely held Shapoorji Pallonji group entity, Goswami Infratech (GIPL), has sought a three-month extension from its bondholders, which include the likes of Cerberus, Deutsche Bank, and Davidson Kempner, for payment of coupon on Rs 14,300 crore of high-yield bonds until end of this year, two banking industry sources told ET.

Separately, the company has also urged bondholders a relaxation in a covenant deadline to monetise Afcons Infrastructure in an initial public offering (IPO) be deferred by a month, to October 31.

These stage-gated milestones define the coupon rates to be paid to bondholders. Any slippage in the deadlines, unless approved by bondholders, would require the borrower to pay at a higher rate than originally contracted. In June 2023, GIPL had raised Rs 14,300 crore through a high-yield bond, with a coupon rate of 18.75%. The annual interest payment of Rs 1,400 crore, initially due in June, was deferred with the promise of an additional Rs 400 crore in payments by the SP Group.

Additionally, the terms of the bond required SP Group to monetise Afcons in an IPO, potentially fetching Rs 7,000 crore. That deadline was September 30, 2024, and bankers said GIPL sought an extension of that listing deadline by a month - until October 31.

A company source separately told ET that although Afcons has received the regulatory approval for its Draft Red Herring Prospectus (DRHP), the start of the Shradh fortnight (considered inauspicious) has delayed the IPO process.

Besides Afcons' monetisation, the bond terms also require GIPL to divest the Gopalpur Port on the Odisha coast. The group expects Rs 850 crore from the sale of the port for the coupon payment. Failure to meet the deadline on these would cause a step-up in the coupon rates beyond 20%. If Rs 1,500 crore in principal or interest payments is not made by September 30, 2024, the coupon rate will increase by 2%.

A Shapoorji Pallonji spokesperson did not immediately respond to requests for comment.

These non-convertible debentures (NCD) are supported by a credit support undertaking from Cyrus Investments Pvt. Ltd., which holds 9% of Tata Sons Pvt. Ltd. (TSPL), with an additional 9% owned and pledged by SICPL.Shradh fortnight causing delay to the IPO process, says company source