The Shapoorji Pallonji (SP) group is reportedly looking to roll over and partly refinance the Rs 20,000 crore of debt it has taken against its shares in Tata Sons.

The SP group holds around 18 per cent of the Tata group holding firm. A Moneycontrol report said the group has begun discussions with lenders to roll over and rejig some of the debt.

It will formally initiate the fundraising process towards the end of March to meet repayments due in the last week of May.

Part of these funds were reportedly raised by the Mistry family under Sterling Investment Corporation Pvt Ltd (SICPL), which has over a 9 per cent stake in Tata Sons.

The bonds were issued in 2021 with a tenure of three-and-a-half years. The funds were largely raised from Ares SSG and US hedge fund Farallon Capital.

In July 2023, group firm Goswami Infratech mobilised Rs 14,300 crore through rupee-denominated zero-coupon NCDs from global investors with a maturity period of 2.5 years.

But it came with an interest rate of 18.75 per cent.

These bonds were issued against the collateral of pledged shares of Tata Sons and Afcons Infrastructure, which is the engineering, procurement, and construction (EPC) arm of the group.

One of the conditions of the issuance was monetisation events in the form of selling a stake in Gopalpur Port by the end of 2023. Another stipulation is to take Afcons public.

It is now learnt that the group has proposed to repay nearly half the amount of Rs 14,300 crore to investors who had subscribed to the bond offering from Goswami Infratech.

As it could not complete the sale of Gopalpur Port within the given time, a bond premium of 200 basis has reportedly been added to the principal amount as a penalty.