SP Group has commenced talks with foreign investors to raise up to Rs 4,000 crore
Published On: Tuesday, March 16, 2021 | By: Team KnowMyStock
SP (Shapoorji Pallonji)Group has commenced talks with foreign investors to raise up to Rs 4,000 crore as debt to be paid to Indian lenders. This is seen as a last-ditch effort by the Indian conglomerate to circumvent the non-performing asset (NPA) label by March-end. The group has already placed its three assets on the block. The move by SP & Company (SPCPL) — the flagship company of SP Group — comes at a time when banks are discussing its one-time restructuring (OTR) application. A banker said SP Group is in talks with SSG Capital and other institutions to raise funds till its OTR gets clearance. SP Group’s earlier attempts to raise funds from Toronto-based Brookfield Asset Management Inc. were nixed by Tata Group. Tata Group had said SP Group cannot give its holding company, Tata Sons, shares as collateral without its permission and had moved to Supreme Court.
“Under OTR, all accounts, even if they are NPAs, will be upgraded automatically to a standard account on the date of OTR approval,” said a spokesperson for SP Group.In the OTR application, SP Group has not sought any concession in the rate of interest. It has said banks will not have to take any haircut on its principal repayment.The company, however, has sought an interest moratorium up to September this year.
Tags: Shapoorji Pallonji Group
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