NewsCorporate ActionsShapoorji Pallonji Group's Goswami Infratech Plans Massive 250 Billion Rupee Bond IssueShapoorji Pallonji Group's Goswami Infratech Plans Massive 250 Billion Rupee Bond Issue
Goswami Infratech, a Shapoorji Pallonji Group unit, is preparing to issue a 250 billion rupee ($2.84 billion) two-year zero-coupon bond by January end. This could be India's largest corporate bond issuance. The bond, secured by SP Group's 9.2% stake in Tata Sons, aims to refinance existing debt and fund corporate purposes. Deutsche Bank is expected to lead the arrangement. This follows a 143 billion rupee bond issued in June 2023 with an 18.5% coupon rate.
*this image is generated using AI for illustrative purposes only.
Goswami Infratech, a unit of the Shapoorji Pallonji (SP) Group, is gearing up for a significant financial move in the corporate bond market. The company aims to complete a substantial 250 billion rupee ($2.84 billion) bond issue by the end of January, marking what could potentially be India's largest corporate bond issuance.
Bond Issue Details
| Parameter | Details |
|---|---|
| Issue Size | 250 billion rupees ($2.84 billion) |
| Bond Type | Two-year zero-coupon bond |
| Security | SP Group's 9.2% stake in Tata Sons (held through Cyrus Investments) |
| Expected Completion | End of January |
| Lead Arranger | Deutsche Bank (expected) |
Purpose of the Bond Issue
The primary objectives of this massive bond issue are:
- Refinancing existing debt, including:
- 88.15 billion rupees in high-yield notes maturing in April 2026
- Other outstanding loans
- Funding for corporate purposes
Previous Bond Issue
This move follows Goswami Infratech's earlier bond issuance in June 2023:
| Parameter | Details |
|---|---|
| Issue Size | 143 billion rupees |
| Coupon Rate | 18.5% |
| Arranger | Deutsche Bank |
It's worth noting that the company has already repaid over a third of this previous bond.
Strategic Implications
The SP Group's management is currently engaged in investor meetings this week, signaling the seriousness and scale of this financial undertaking. This bond issue appears to be part of a broader strategy to:
- Diversify funding sources
- Potentially secure a lower coupon rate compared to the previous 18.5% coupon bond
Market Impact
If successful, this bond issue by Goswami Infratech could set a new benchmark in India's corporate bond market. The scale and structure of the issue, along with the involvement of a major conglomerate like the Shapoorji Pallonji Group, may influence future large-scale corporate fundraising efforts in the country.
As the end of January approaches, market participants will be keenly watching the outcome of this significant financial maneuver by Goswami Infratech and its potential ripple effects on the broader Indian corporate bond landscape.
18
