On the other hand, the company has also urged bondholders to relax the deadline of the pact to monetize Afcons Infrastructure in an initial public offering (IPO) will be postponed for one month, until October 31.
These stage-defined milestones define the coupon rates to be paid to bondholders. Any delay in the dues, unless approved by bondholders, would force the borrower to repay at a higher rate than originally agreed. As of June 2023, GIPL had raised Rs 14,300 crore through a high-yield bond, with a coupon rate of 18.75%. The annual interest payment of Rs 1,400 crore, which was initially due in June, was deferred with the promise of an additional Rs 400 crore in payments by the SP Group.
Moreover, the terms of the bond required SP Group to monetise Afcons in an initial public offering (IPO), which could raise Rs 7,000 crore. The deadline was September 30, 2024, and bankers said GIPL was seeking an extension of that listing deadline by a month, to October 31.A company source separately told ET that while Afcons has received regulatory approval for its Draft Red Herring Prospectus (DRHP), the start of the Shradh fortnight (considered unfavourable) has delayed the IPO process.
In addition to monetizing Afcons, the terms of the bonds also require GIPL to divest the funds. Gopalpur Port off the coast of Odisha. The group expects to receive Rs 850 crore from the sale of the port for coupon payments. Missing the deadline would trigger a hike in coupon rates above 20%. If principal or interest payments of Rs 1,500 crore are not made by September 30, 2024, the coupon rate will rise by 2%.
A spokesperson for Shapoorji Pallonji did not immediately respond to requests for comment.
These non-convertible debentures (NCDs) are backed by a credit support commitment of Cyrus Investments Pvt. Ltd., which owns 9% of Tata’s Children Pvt. Ltd. (TSPL), with an additional 9% held and pledged by SICPL.Shradh fortnight causing delays in IPO process, says company source
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