Shapoorji Palanji Group looks to raise $1.6 billion, may pledge shares in Tata Sons

People with knowledge of the matter told Bloomberg that Shapoorji Palanji Group is in talks to raise $1.6 billion through a private credit facility. The discussion focused on a three-year term with an interest rate in the double digits.

These sources said the infrastructure conglomerate may pledge some of its shares in Tata Sons to raise capital.

However, when contacted by Bloomberg via text message to confirm the development, Shapoorji Palanji’s spokesperson did not comment.

Earlier, in April, Bloomberg reported that the group is looking for ways to free up cash as rising interest rates bite. It is weighing an asset sale, including a controlling stake in its flagship engineering firm, that could raise about $2 billion.

In September last year, Shapoorji Palanji Group sold majority stake in its consumer durables business under the Eureka Forbes label to US-based private equity fund Advent International. 4,400 crores. The sale proceeds were said to help the 156-year-old group reduce its debt and focus on the core construction and engineering business under Afcons.