SP repays Rs 12,450 crore, exits RBI recast plan - Times of India

SP repays Rs 12,450 crore, exits RBI recast plan – Times of India


MUMBAI: Shapoorji Pallonji & Company (SPCL), the flagship holding company of the Pallonji Mistry family, has repaid Rs 12,450 crore to lenders to exit the RBI’s Covid one-time resolution (OTR) plan. The SPCL resolution has been India’s largest OTR and possibly the first to get fully repaid within a year of implementation.
The Mistry family repaid the lenders after they infused over Rs 5,100 crore into the flagship holding company last year. Apart from that, SPCL monetised assets worth Rs 3,750 crore. It sold Sterling Wilson Renewable Energy to Mukesh Ambani’s Reliance Industries and Eureka Forbes to private equity player Advent International.
After Covid hit India in March 2020 and the government initiated a lockdown to curb its spread, SPCL’s mainstay business — construction and real estate — were badly impacted. In August 2020, the RBI came out with a special scheme for Covid-impacted borrowers. The scheme included a one-year moratorium on interest repayment and a two-year moratorium on principal instalment. SPCL applied for the OTR in September 2020. It had sought a six-month moratorium on interest and a two-year moratorium on principal repayment. The lenders implemented SPCL’s OTR plan in March 2021.

SP repays Rs 12,450cr, exits RBI

From then till March 2022, the Mistry family monetised their personal assets including real estate and pledged all of their 18% stake in Tata Sons to raise funds. They raised about Rs 10,000 crore from Ares SSG, Farallon Capital and Deutsche Bank by pledging Tata Sons shares. Some of the proceeds were infused into SPCL to provide financial support.
The resolution plan did not involve any haircut for the lenders, which was led by SBI. SPCL has repaid all the lenders before the sought extension, a spokesperson of the company said, adding that it has achieved an early exit from the Covid OTR plan. “We expect this development to have a positive impact on SPCL/Shapoorji Pallonji Group’s credit outlook.” The SP Group’s total debt has come down to Rs 25,000 crore after its exit from the OTR plan.
One of India’s oldest engineering and construction companies, SPCL’s construction business has an order book in excess of Rs 30,000 crore. Besides, its real estate franchise achieved sales of over Rs 4,000 crore in fiscal 2022.


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