The Mistry group reimburses Rs 12,450 cr to its lenders
Shapoorji Pallonji Group said on Thursday it had settled the company’s debt with a one-time payment of Rs 12,450 crore to its 22 lenders, leaving the group’s balance sheet with a loan of only Rs 3,600 crore.
To overcome the impact of the COVID-19 lockdown, Mistry Group had requested a one-off loan restructuring from a group of lenders led by State Bank of India in mid-September 2020 when it faced cash flow problems resulting in a Default of Rs 200 crore on commercial paper issued to Union Bank of India.
At Rs 12,450 crore, Shapoorji Pallonji & Company’s single settlement was the largest in the system. The group had asked for two years to settle its dues but managed to get out in one year, said the company owned by two brothers, Shakur and Cyrus Mistry, each holding 50% of the capital.
SP Group is also Tata Sons’ second largest shareholder with an 18.7% stake after Tata Trusts, which owns more than 62% of the $105 billion salt-software conglomerate. But the more than 60-year-old relationship was turned upside down after the Tatas sacked Cyrus Mistry as chairman of the Tata Group in October 2016, well before his five-year term, leading to a years-long messy legal battle.
The repayment was enabled by the Mistry family who injected over Rs 5,100 crore into the business last year and the group raised Rs 3,750 crore by monetizing two of its flagship assets – Sterling Wilson Renewable Energy and Eureka Forbes – last year, according to the release without explanation. how the rest of the money was arranged.
However, earlier this week the group reportedly raised Rs 4,000 crore from mortgage lender HDFC after pledging shares of Sterling Investment Corporation, which owns 9.19% of Tata Sons, the main holding company of the Tata Group. .
A spokesperson for the SP group told PTI that after the repayment of this debt, the group had only Rs 3,600 crore loan on its books.
SP Group amid the pandemic had tried to raise Rs 3,750 crore from Brookfield by pledging Tata Group shares, but Bombay House opposed such an arrangement, forcing the Mistrys to move the Supreme Court to get a verdict favorable.
This time, he did not seek such arrangements, even though there were reports that the group would do so for Rs 15,000 crore from a major Canadian private equity firm.
SP Group’s arm, Evangelos Ventures, had over the past year borrowed Rs 9,530 crore from affiliates of private equity funds Ares Capital and Farallon Capital to reduce the group’s overall debt.
The Mistry Group is one of the oldest engineering and construction companies with diverse interests in real estate and oil and gas. Its construction business under Afcons has an order book above Rs 30,000 crore at the end of March, while its real estate franchise achieved more than Rs 4,000 crore in sales in FY22 despite the pandemic.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)