By Admin 
Shapoorji Pallonji Group: Shapoorji Pallonji Group is in financial crisis amid the ongoing controversy regarding governance and board appointments in Tata Trust. According to sources, Shapoorji Pallonji Group has to repay a loan of about $ 1.2 billion (about Rs 10,000 crore) by December, for which it has mortgaged its entire stake in Tata Sons.
It had earlier refinanced old loans worth about $3.2 billion. That means, the old loan amount was repaid by taking a new loan. Now it has to pay the principal amount along with interest within just two months. According to an estimate, SP Group has a total debt of Rs 55,000 crore to Rs 60,000 crore. Of these, the debt of Rs 25,000-30,000 crore is on the promoter Mistry family only.
SP has more than 18 percent stake in Tata Sons
Shapoorji Pallonji Group may find it challenging to raise such a large amount of money to repay the debt. This may add further complexity to the talks of exiting Tata Sons by selling its stake.
SP’s stake in Tata Sons is a little more than 18 percent. Now it will not be easy for Shapoorji Pallonji Group to arrange money in lieu of pledge of stake because it also includes shares of Tata Sons, hence lenders can demand more relief on their assets monetization plan.
The group also faces this problem
This means that it will not be easy for Shapoorji Pallonji Group to convert the shares into cash by pledging them. Since Tata Sons is an unlisted company, its shares cannot be bought or sold without the approval of the Tata Group. The problem is that till now no response has been received from Tata Group regarding the purchase of part or full stake of SP Group.
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