SP Group in talks with PE, preparing to sell port and other assets

MUMBAI : Shapoorji Pallonji (SP) Group has started talks with private equity (PE) firms to sell its entire stake in Odisha’s Gopalpur Ports and some of its stake in infrastructure development firm Afcons Infrastructure by early next year.

JSW Ports and Adani Group had offered around Rs 3,000 crore to acquire Gopalpur Port, which was not in line with the group’s valuation expectations. After this, talks have been started with private equity and other investors.

A source familiar with the development said a plan to sell stake in Afcons Infrastructure through an initial public offering is also being considered. SP Group did not respond to queries sent over email.

Group flagship Shapoorji Pallonji Company has to make a principal payment of Rs 165 crore by March next year and another payment of Rs 1,035 crore in the next financial year and wants to complete the asset sale deal before March next year, the source said.

In June this year, the billionaire Mistry family, promoters of the 150-year-old conglomerate, had raised Rs 14,300 crore by pledging Cyrus Investments Pvt’s stake in Tata Sons Pvt Ltd. The group holds 18.4 per cent stake in Tata Sons through its two investment companies – Cyrus Investments and Sterling Investments.

In the last two years, the holding firm has managed to sell its stake in Eureka Forbes, Sterling and Wilson Renewable Energy and SP Jammu Udhampur Highway to reduce its debt. Due to the sale of these assets, the firm’s consolidated debt came down to Rs 20,600 crore by June this year, from Rs 37,170 crore by August 2020.