Advertisement
Private equity has played a significant role in shaping Indi...
In today’s real estate landscape, fitness is often treated...
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
Goswami Infratech, part of the Shapoorji Pallonji Group, has seen its debt downgraded by CareEdge due to delays in its planned USD 2.8–3.1 billion fundraising. The move highlights rising refinancing risks and increased costs linked to rupee hedging. The company has extended repayment timelines for its high-yield debt to June 30 with investor approval and is now planning a mix of dollar and rupee bond issuances. While an alternate funding line has been secured, the downgrade reflects continued pressure on the group’s financial strategy and execution timelines.
An Indian rating agency has downgraded debt issued by Goswami Infratech, a unit of the Shapoorji Pallonji Group, pointing to delays in group-level fundraising and growing refinancing concerns. Advertisement
CareEdge Ratings lowered the company’s non-convertible debentures to B+ from BB-, indicating increased credit risk. The agency linked the downgrade to slower-than-expected progress in raising funds that were initially planned over the past few months.
Goswami Infratech had aimed to raise between USD 2.8 billion and USD 3.1 billion, but the plan has been pushed back. Higher costs associated with hedging the Indian rupee against foreign currencies have played a key role in the delay, making overseas borrowing less attractive.
To manage the situation, the company is now restructuring its fundraising strategy. It plans to split the capital raise between dollar-denominated and rupee-denominated bonds, with the issuances expected to be completed before June 30, according to merchant bankers involved in the process.
The rating downgrade also factors in the company’s request to extend repayment of its high-yield debt. The maturity deadline has been shifted to June 30 from April 30, with investors agreeing to the extension. This move was seen as necessary to provide additional time for the refinancing exercise.
Goswami Infratech had earlier raised INR 143 billion (USD 1.51 billion) through this bond issuance in June 2023, attracting participation from several global investors. These bonds were issued at a high yield of 18.75%, reflecting the risk profile at the time. The yield has since increased further due to breaches of certain covenants.
Following partial repayments to some investors, the outstanding principal now stands at INR 83.43 billion. The total repayment obligation, including interest payouts, is estimated at around INR 136 billion.
CareEdge also noted that the group had secured an alternate funding line to meet repayment obligations on the original due date, even as it sought an extension. This provided some comfort to investors regarding immediate liquidity needs.
The Shapoorji Pallonji Group has been managing elevated debt levels in recent years, with multiple refinancing exercises and asset monetisation efforts undertaken across its businesses, including real estate and infrastructure. The current downgrade reflects continued pressure on timely execution of these plans.
The group did not respond to queries seeking comments on the development.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
