Shapoorji Pallonji to make Rs 1,800 cr interest payment to bondholders by Oct-end; Afcons IPO next week: Report

The IPO for Afcons Infrastructure Ltd, the group’s flagship, is scheduled to open for subscription mid-next week, with the company anticipating a strong response.

“With the Gopalpur Port sale to Adani completed and the Afcons IPO set to launch next week, the SP group is aiming to make the interest payment on the non-convertible debentures (NCDs) by October 30, unless there is a minor delay in the IPO closure,” Moneycontrol quoted a source as saying.

In September, the SP group obtained approval from bondholders holding NCDs worth Rs 14,300 crore to defer the interest payment by three months, until December 31, according to the report.

This extension was necessary as asset monetization plans, including stake sales in Gopalpur and Dharamtar ports, and the Afcons IPO, had taken longer than anticipated and had not generated enough funds to cover the payment.

In a September notice to lenders, the SP Group detailed that the sale of Dharamtar Port to JSW Group and the Gopalpur stake to Adani would generate Rs 250 crore and Rs 850 crore, respectively—falling short of the expected Rs 1,500 crore. The Gopalpur Port sale was finalized on October 11.

The shortfall has made the Afcons IPO even more crucial to SP Group’s plans to meet its debt obligations.

Sources revealed the IPO would launch mid-next week, with the group increasing the size of the offering to Rs 8,400 crore from the originally planned Rs 7,000 crore due to strong demand, Moneycontrol had reported on October 7.

The revised IPO now includes a secondary sale of shares through a pre-IPO round worth Rs 3,500-4,000 crore, reducing the IPO size to Rs 4,000-4,500 crore, the report said.

With this revised plan, the SP Group aims to raise Rs 7,150 crore from selling Afcons shares, compared to the initial plan of Rs 5,750 crore.

These additional funds will help ease the group’s debt burden, according to the report.

Afcons will raise Rs 1,250 crore from the IPO to support its business needs, which remains unchanged from the original plan.