Shapoorji Pallonji Group has secured investor commitments for its Rs 21,350 crore refinancing package with the, according to people familiar with the discussions.
The refinancing comprises a rupee-denominated non-convertible debenture (NCD) issuance priced at around 18.95% and a US dollar tranche expected to yield about 14.5%. The funds will be used towards refinancing existing debt backed by the group’s 18.37% stake in Tata Sons. Deutsche Bank was the sole arranger for the issue.
The rupee bond issue has attracted commitments from a mix of global distressed debt investors, private credit funds and domestic wealth managers. Deutsche Bank and Mercury Finance Company emerged as the largest investors, each committing about Rs 6,210 crore, according to people familiar with the allocations.
Other major investors include Farallon-backed Sageoak Capital VCC with Rs 1,896 crore, Cerberus-backed Morgan Stanley Asia (Singapore) with Rs 1,671 crore, Burlington Loan Management DAC (DKP) with Rs 1,422 crore and Varde Holdings with Rs 1,281 crore. Ares-backed Investment Opportunities VII GIFT City Fund committed Rs 948 crore, while Broadpeak-backed Fort Canning Investments invested Rs 698 crore.
Domestic participation includes DSP Finance, InCred Special Opportunities Fund-I, Capri Global Capital, IIFL Management Services, Ambit Wealth, ASK Financial Holdings, Nuvama Wealth Investment and several other investors.
The refinancing package was resized from the originally proposed Rs 25,500 crore after the group recalibrated its funding requirements. The transaction includes both rupee and dollar debt, allowing the conglomerate to diversify its investor base while refinancing high-cost borrowings.
The deal is among the largest private credit-led refinancing exercises in India and has drawn significant participation from global special situations and distressed debt investors despite the relatively high pricing. Market participants said the strong demand reflects investor comfort with the collateral package and the strategic value of the Tata Sons shareholding backing the transaction.
Karur Vysya Bank Q1 profit jumps 45% to Rs 756 crore
Karur Vysya Bank on Monday reported a 45% jump in first quarter net profit at Rs 756 crore as compared with Rs 521 crore in the year ago period while its asset quality slipped a tad.
The bank's pre-provision operating profit stood 36% higher at Rs 1096 crore, against Rs 805 crore earlier, backed by a 32% rise in net interest income at Rs 1423 crore.
Its net interest margin for the quarter stood at 4.34% as compared with 3.86% in the year-ago period.
Its gross non-performing assets rose to 0.74% at the end of June from 0.66% a year prior. Net NPA stood unchanged at 0.19%. Total advances registered a 17% year-on-year growth to Rs 1.05 lakh crore while total deposits rose 15% to Rs 1.23 lakh crore.
