The Shapoorji Pallonji (SP) Group is reportedly considering a merger of its two port holding companies, SP Imperial Star and SP Port Maintenance, which oversee the Dharamtar and Gopalpur ports respectively. Dharamtar has already been sold to JSW, while Gopalpur is in the process of being sold to Adani. The proposed merger is expected to be implemented through a scheme of arrangement under the Company Law Tribunal (CLT), and the process could take several months to finalize.

Meanwhile, Axis Trustees Services, which acted as Debenture Trustee for the Rs 143 billion non-convertible debentures (NCDs) issued by Goswami Infratech, informed the bondholders that Goswami Infratech had received in-principle approval from the BSE on September 30, in respect of a Most Favoured Nation (MFN) trigger event.

Goswami Infratech (GIPL), a unit of the SP Group, has secured an extension for a major prepayment linked to its NCDs. The deadline for this repayment, linked to the MFN event, has been extended from September 30 to December 31, 2024, as the group works to refinance its promoter-level debt through Sterling Investment Corporation (SICPL). In light of delays in fundraising and heightened refinancing risks, CARE Ratings last month downgraded GIPL’s debt to Care BB- from Care BB with a negative outlook. In June 2023, GIPL raised Rs 143 billion through a high-yield bond with a coupon of 18.75 per cent. The payment of this bond, initially due in June, was deferred, with the SP Group committing to make additional payments of Rs 4 billion.

The SP Group is aiming to reduce its debt through asset sales, including the sale of Gopalpur Port and the initial public offering (IPO) of Afcons Infrastructure. However, delays in these monetisation events have led to a 400 basis point hike in the coupon rate. The bond, originally issued at 18.75 per cent, now carries a 22.75 per cent interest rate. Afcons has received SEBI approval for an IPO of Rs 84 billion, which could take place this month. In addition, Gopalpur Port has received approval from the state government for its sale to Adani, and the group expects to generate Rs 8.50 billion from the transaction.