SP Group May Sell S&W to Raise Funds

The Shapoorji Pallonji (SP) group will have to look at alternate ways to raise funds—selling its stake in listed subsidiary Sterling and Wilson, offering land parcels across India, or restructuring debt at the project level are among its options–after the Tatas upset its plans to Tata Sons shares. The SP group defaulted on a Rs 500-crore loan taken from its listed subsidiary, Sterling & Wilson, in June and may go for a debt recast as it meets all criteria as per the recommendations made by the K V Kamath committee last week. The group is working on alternative after the Tatas moved the Supreme Court against its plan to raise funds worth Rs 3,750 crore from Brookfield, the Canadian financial giant, by pledging part of its Tata Sons shares. Tata Sons moved the court on September 5, a day after the SP group signed an agreement with Brookfield, said the SP group. The Mistry family owns 18.5 per cent stake in Tata Sons while the rest is owned by Tata Trusts and Tata group companies. The Tatas hold the right of first refusal (RoFR) on Mistry family’s shares, arguing that they cannot pledge TSL shares without its approval. Bankers said as Brookfield deal will now be litigated, the SP group would have to look at selling assets. The SP group’s stake in S&W is worth Rs 2,200 crore as on Friday and the group is scouting for buyers for this stake.