The Shapoorji Pallonji Group has begun the process of redeeming non-convertible debentures (NCDs) worth Rs. 900 crore from high-net-worth individuals (HNIs) and family offices, as part of an ongoing effort to manage and refinance its large debt pile.
According to a recent company filing, the debentures were issued in 2023 by promoter group entity Goswami Infratech and are part of a much larger Rs. 14,300-crore debt issuance programme. A portion of this issuance was later sold by banks and wealth managers to private investors, including HNIs and family offices.
The current redemption is being carried out under a “voluntary redemption” window between December 18 and December 25. As per the filing, only those investors holding fewer than 5,000 debentures are eligible to participate in this round. This threshold roughly translates to investments of up to Rs. 50 crore.
The group said it is in the process of raising fresh funds to repay these investors. This signals an attempt to ease near-term repayment pressure while continuing talks with lenders and private credit funds to refinance longer-term liabilities.
Goswami Infratech has already repaid Rs. 5,485 crore to investors from this NCD issue. However, a substantial Rs. 8,815 crore remains outstanding, according to data from CARE Ratings. These debentures are scheduled to mature in April 2026, giving the group a little over a year to fully resolve its obligations.
The redemption move comes at a time when the SP Group is under significant repayment pressure. A recent report by Moneycontrol stated that the group faces nearly $1.2 billion in debt repayments by December. While HNIs and family offices are expected to exit their exposure through this voluntary redemption, institutional investors are likely to roll over a large part of their debt, thereby continuing their relationship with the group.
Alongside this immediate redemption, the group is engaged in discussions with investors to raise between Rs. 20,000 crore and Rs. 25,000 crore to refinance its existing loans. These talks are part of a broader plan to restructure its balance sheet and reduce the risk of cash flow stress in the coming quarters.
This follows a major high-cost debt transaction in May, when the SP Group raised over $3.2 billion in what was described as the largest private credit financing of the year. The funds were raised against the group’s 9.2 percent stake in Tata Sons, held through Sterling Investment and other group entities, as well as against additional assets.
A significant portion of this capital was used to redeem earlier NCDs issued to global private credit investors, including Ares and Farallon, with repayments exceeding $2 billion. Part of the proceeds was also deployed toward partial redemption of the Goswami Infratech NCDs.
For India’s private wealth investors, the voluntary redemption offers a controlled exit from a large and complex debt structure that has drawn sustained market attention. Many HNIs and family offices entered the NCD issuance seeking higher yields during a period of rising interest rates, but growing concerns around refinancing risk and payout schedules appear to have accelerated their exit plans.
For the SP Group, the challenge remains larger than the current Rs. 900-crore redemption. With nearly Rs. 9,000 crore still outstanding on this particular NCD issue and a broader refinancing requirement running into tens of thousands of crores, the group’s ability to raise fresh capital on sustainable terms will be closely watched by the market.
Credit analysts point out that while asset-backed private credit has provided the group with breathing room, it comes at a high cost and increases sensitivity to market conditions. The next year will therefore be critical in determining whether the group can successfully shift from short-term debt management to a more stable long-term capital structure.
If the voluntary redemption proceeds smoothly, it could offer some reassurance to investors. However, the larger test for the SP Group will lie in its ability to execute its ambitious refinancing plans amid tight global credit conditions and elevated interest rates.
