Shapoorji Pallonji Group is looking to raise about $ 2.5 billion by selling some of its infrastructure and real estate assets to pare debts. It is planning to sell stakes in Afcons infrastructure a company acquired from ICICI Bank and Gopalpur Ports also an acquired asset from metal trader Sara International and entrepreneur Mahimananada Mishra of Orissa Stevedores.
It is also considering selling part of its interests in real estate assets with a development size of over 100 mn sq ft. The asset-monetisation proceeds will be used to reduce its debt of Rs 21,000 crs and for other purpose.
The group plans to sell Gopalpur Ports as the business environment has improved. Cargo Movement at the port was impacted after India imposed export duty on certain commodities like iron ore. This tax was subsequently eliminated.
It has divested the water purifier maker Eureka Forbes, the Jammu Udhampur highway assets, Forbes Facility Services and Sterling & Wilson Renewable Energy to reduce loan obligations. Additionally, the 158- old group had raised $1.3bn by pledging half of its 18.7% stake in Tata Sons with Farallon Capital and Ares SSG Capital.
SP and related parties still own 33% in Sterling & Wilson renewables which they plan to exit in near future. Apart from this fresh asset sale plan SP is also raising $1.75bn from pledging its remaining Tata Sons stake.