Shapoorji Pallonji (SP) Group is considering merging two of its port-holding entities-SP Imperial Star and SP Port Maintenance-that have Dharamtar and Gopalpur Ports, respectively, as the operating entities.
While Dharamtar has already been sold to JSW, Gopalpur is set to be sold to Adani. The proposed merger will be executed through a scheme with the Company Law Tribunal (CLT), with the process expected to take several months to complete.
Meanwhile, Axis Trustees Services, acting as Debenture Trustee for the Rs 14,300-crore non-convertible debentures (NCDs) issued by Goswami Infratech, informed debenture holders that Goswami Infratech has received in-principle approval from the BSE, dated September 30, on the Most Favoured Nation (MFN) trigger event.
A SP Group spokesperson did not immediately respond to a request for comment.
Goswami Infratech (GIPL), a unit of the SP Group, has secured an extension for a key early redemption payment tied to its NCDs. The deadline for the redemption, tied to an MFN event, has been pushed from September 30 to December 31, 2024, as the group works on refinancing its debt at the promoter level through Sterling Investment Corporation (SICPL). CARE Ratings downgraded GIPL’s debt last month due to delays in fundraising and increased refinancing risks to Care BB- with a negative outlook from Care BB. In June 2023, GIPL raised Rs 14,300 crore through a high-yield bond, with a coupon rate of 18.75%. The payment on this bond, initially due in June, was deferred with the promise of an additional Rs 400 crore in payments by the SP Group.
SP Group is looking to reduce debt through asset sales, including Gopalpur Port and Afcons Infrastructure’s IPO. These monetisation events have faced delays, resulting in a 400-basis-point coupon step-up. The fund, which was raised at 18.75% is now at 22.75%.
While, Afcons has received approval from Sebi for an Rs 8,400 crore IPO, the listing can happen anytime this month. At the same time, Gopalpur Port has received state government clearance for sale to Adani and the group expects Rs 850 crore from the sale.