The Shapoorji Pallonji Group is considering using part of the funds it may receive from selling its 18.4% holding in Tata Sons Pvt. to pay down debt tied to its infrastructure arm, according to people with knowledge of the matter.
The company is targeting repayment of Rs 8,810 crore (about $1 billion) in bonds issued by Goswami Infratech Pvt., which are due to mature in April next year, the sources said, requesting anonymity as the details are private.
Clearing this debt—either fully or partially—would allow investors to back other capital expenditure initiatives within the group, the people added. They also cautioned that discussions are still in the early stages and could be subject to change.
Shapoorji Pallonji did not respond to Bloomberg’s request for comment, while Tata Sons also declined to comment.
According to a report in the private sources last week, Tata Sons has opened talks with Shapoorji to explore ways for the shareholder to exit its stake in the company. This development follows Shapoorji’s completion of a $3.4 billion financing deal—India’s largest-ever private credit transaction—less than three months ago.
Using potential proceeds from the Tata Sons stake sale to repay the Goswami bonds would help Shapoorji lower its borrowing costs, especially after it had to offer a hefty 19.75% yield in its May deal. Last month, the group also obtained a crucial regulatory waiver from the central bank to avoid a rise in the cost of that private credit arrangement.
If the Tata Sons stake sale does not go ahead, Shapoorji is expected to start talks in November to refinance the 2026 Goswami debt, the sources said.
