Shapoorji Pallonji Real Estate, the property development arm of the storied Shapoorji Pallonji Group (SP Group), is preparing to go public. It’s looking to raise a hefty INR 4,000 – 5,000 crore through an initial public offering (IPO)—a move that not only promises growth but also signals a determined effort to lighten the group’s debt load.
This IPO follows hot on the heels of Afcons Infrastructure’s market debut, which turned out to be a success story for the SP Group. With the latest offering, the group is doubling down on its efforts to streamline operations and strengthen its financial foundation.
Conversations with investment banks are already underway as SP Group lines up the pieces for the offering. Appointments for advisors are likely to wrap up by next month, insiders suggest. Earlier this year, the group reorganized its real estate holdings under Shapoorji Pallonji Real Estate, a move aimed at boosting operational efficiencies and unlocking better value from its property assets.
Debt reduction appears to be at the heart of Shapoorji Pallonji Real Estate IPO. A substantial amount of the proceeds is expected to go toward cutting down promoter-level debt while also addressing obligations within the real estate arm.
Shapoorji Pallonji Real Estate has built an impressive footprint across India. Its development pipeline spans over 142 million square feet, with projects dotting major urban centres like Mumbai, Pune, Bengaluru, Gurugram, and Kolkata.
In Mumbai, the company’s offerings include high-profile residential developments like BKC 9, BKC 28, and The Odyssey. Pune features Wildernest and Vahana, while Bengaluru boasts Parkwest 2.0. And in Kolkata, there’s Shukhobrishti—a massive affordable housing project that encompasses 20,000 homes, earning it the title of India’s largest in the category. It’s made a mark in commercial real estate through its SP Infocity brand, which provides premium office spaces in Pune, Nagpur, and Manesar.
For SP Group, this IPO isn’t just about capital infusion; it’s part of a larger effort to clean up the balance sheet. The group has loans tied to shares of Tata Sons, and the IPO’s proceeds could play a key role in refinancing or reducing those liabilities.
