ShapoorJi PallonJi Fundraise News: In one of the most monumental financial maneuvers in Indian corporate history, the Shapoorji Pallonji (SP) group has successfully closed a massive ₹21,350 crore fundraise. This transaction stands out not only for its staggering size—ranking as one of the largest private credit deals in India to date—but also for its intricate financial engineering, drawing massive interest from both domestic and international investors.
The Financial Mechanics: How the Deal Was Structured
At the heart of this massive transaction is Eqyizen Investment Private Limited, a promoter group entity of the SP group. Eqyizen raised the funds through the issuance of unrated, unlisted, secured, zero-coupon, redeemable non-convertible debentures (NCDs).
To give investors confidence, the SP group backed these Indian Rupee (INR) NCDs with valuable collateral. The security package notably includes:
A portion of the SP group’s shareholding in Afcons Infrastructure Limited.
50% of the SP group’s shareholding in Tata Sons Private Limited.
Furthermore, the transaction utilized a bespoke cross-border structure. Mercury Finance Company issued US$ 650 million in 14.5% senior, secured, unrated notes due in 2029. The proceeds raised from these USD bonds were primarily used to subscribe to a portion of the INR NCDs, bridging domestic and international funding markets seamlessly.
Where Will the Money Go?
With billions of rupees flowing into the group, the deployment strategy focuses heavily on financial stabilization and future growth. According to group disclosures, the raised capital will be directed toward two primary objectives:
Refinancing existing debt: Clearing out older liabilities across various SP group entities to ease ongoing financial pressure.
Capital requirements: Funding group operations and future capital expenditures to drive business expansion.
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The Legal and Banking Powerhouses Behind the Deal
Pulling off a financial transaction of this scale required a powerhouse team of top-tier law firms and international financial institutions.
Advising the Issuer: Desai & Diwanji served as the Indian legal counsel for Eqyizen Investment, while A&O Shearman acted as the English legal counsel for the issuer.
Advising the Coordinators: TT&A advised Deutsche Bank A.G, which acted as the coordinating bank on the NCD issuance and as a placement agent for the Mercury Finance USD notes. TT&A’s core teams spanned Banking & Finance—led by Partner Sonali Mahapatra along with Kartik Jigyasi, Adesh Sharma, Anushree Verma, Kashish Agarwal, and Tarun Doyal—and Debt Capital Markets, spearheaded by Partners Rahul Gulati and Priyanka Kumar, alongside Saara Ahmed and Shrijaya Singh.
International Counsel: Linklaters acted as the English legal counsel for Deutsche Bank A.G, and Appleby served as the Mauritian legal counsel for Mercury Finance Company.
This landmark deal highlights the growing sophistication of India’s private credit market, proving that complex, multi-layered structures can successfully mobilize massive pools of capital to fuel corporate restructuring and growth.
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