Shapoorji Pallonji Group is preparing a massive capital exercise to raise approximately **₹25,000 crore** ($2.8 billion) through a new bond issue. This move, expected to finalize by early April, marks a critical step in the conglomerate's efforts to lower its high-cost debt and optimize its balance sheet. The group aims to secure this funding through a mix of domestic and international markets. About **₹15,000 to ₹16,000 crore** is projected to come from rupee-denominated non-convertible debentures at home, while the remaining **$750 million to $1 billion** is targeted via three-year dollar bonds overseas. Improved Pricing and Investor Confidence A standout feature of this fundraising is the significantly lower pricing compared to previous rounds. Analysts expect a reduction of **300–400 basis points** (3% to 4%) in interest costs. Current negotiations suggest a tighter coupon rate than the **18.75%** yield seen in the 2023 Goswami Infratech borrowing. This shift reflects growing lender confidence as the group clarifies its asset sale timelines and improves its credit profile. Strategic Asset Sales and Liquidity The group’s financial outlook is bolstered by successful recent exits and ongoing monetization plans. Key events include: * **Afcons Infrastructure:** The unit’s listing in late 2024 unlocked significant value and provided fresh capital for deleveraging. * **Port Assets:** Sales of the Gopalpur and Dharamtar ports have already contributed roughly **₹1,000 crore** toward debt reduction. * **Real Estate Expansion:** Shapoorji Pallonji Real Estate recently launched a **105-acre** project in Pune with an estimated revenue potential of **₹600 crore**, adding to a massive development pipeline of **142 million square feet**. The group is also reportedly exploring an **₹8,000 crore IPO** for its real estate arm to further reduce promoter-level debt. The Tata Sons Factor The most significant driver of investor interest remains the group’s **18.37% stake in Tata Sons**. Valuation estimates for this holding exceed **₹3 lakh crore** ($35 billion). Recent boardroom discussions at Tata Sons regarding listing mandates and potential negotiated settlements have provided "recovery visibility" for SP Group’s creditors. Any move toward monetizing this stake—whether through a public listing or a private settlement—would fundamentally transform the group’s liquidity position. Refinancing Goals The primary objective of this **₹25,000 crore** issue is to refinance existing debt maturing in April. By securing lower rates now, the Mistry family-led group is moving away from expensive private credit deals toward a more sustainable and professional capital structure. Major global funds, including PIMCO and BlackRock, remain in active discussions, signaling that the conglomerate’s long-term restructuring is gaining substantial momentum.