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Goswami Infratech, part of Shapoorji Pallonji Group (SP Group), is preparing a major two-year bond issue worth around INR 250 billion (USD 2.84 billion) to refinance existing debt and support corporate purposes. The issuance will be backed by SP Group's 9.2% stake in Tata Sons through Cyrus Investments. Deutsche Bank, which managed a previous 143 billion rupee bond in 2023, is expected to lead this sale. The company is engaging new investors to diversify funding and aims for a lower coupon than the earlier issue.
Goswami Infratech, a subsidiary of Shapoorji Pallonji Group, is set to complete a two-year bond issuance by the end of January to refinance existing borrowings, according to bankers familiar with the matter. The company plans to raise about INR 250 billion (USD 2.84 billion) through a zero-coupon bond. Advertisement
The funds will be used to repay high-yield notes worth INR 88.15 billion maturing in April 2026, along with another loan, and for other debt-related and corporate purposes. The bond will be secured by SP Group's 9.2% stake in Tata Sons, held through its subsidiary, Cyrus Investments.
Deutsche Bank, which handled Goswami Infratech's previous 143 billion rupee bond issuance in June 2023, is expected to lead the current offering. The company has already repaid more than a third of the prior bond, which carried an 18.5% coupon, as per Care Ratings, which rates the papers BB-.
The book-building process for the new issue is anticipated to finish by mid-January, with closure planned by the end of the month. SP Group's senior management is conducting a non-deal roadshow to brief investors on recent developments and assess demand for what could become India's largest-ever corporate bond sale.
The group has been reaching out to new investors to diversify funding sources and is confident that the coupon for this issuance will be lower than in its previous bond sale.
Source Reuters
5th Jun, 2025
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