SP Group to raise funds from Offshore Banks by pledging their entire stake

SP Group raises funds from offshore banks

The, which holds an 18.37% stake in Tata Sons, the Tata Group’s holding company, may soon close a deal with offshore banks to raise funds by pledging the shares. The funds to be raised will be used to clear debts. SP Group to raise funds from offshore banks by pledging their entire stake

18.37% of stakeholders of Tata Sons, The Shapoorji Pallonji Group, may soon close a deal with offshore banks against their share. This decision has been made to overcome the ongoing debt. The transaction is expected to be finalized by September. Around Rs.5000 crore is estimated to be raised in this deal. Earlier, Tata Sons shares up to 9.19% were pledged by Cyrus Investments, and will now be pledging the rest of the 9%.

The SP Group is also trying to monetize its assets ie. Sterling, Eureka Forbes, and Wilson Solar, and Afcons Infrastructure to prepay loans worth more than Rs 9,000 crore. Tata Sons had asked for a stay on this offshore deal in September 2020, which was granted by the court, but this decision was overturned in the final verdict in March 2021, enabling them to go ahead with the deal. 

There is now no bar on the SP Group pledging its holding in Tata Sons in the view of several legal experts. However, experts say Tata Sons could probably challenge new moves to pledge shares by asking for clarification of the SC decision or by filing a new application before NCLT.

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