Shapoorji Pallonji Group Debunks Bailout Rumors with Innovative Loan Structure

Shapoorji Pallonji Group (SP Group) clarified that its loan from Power Finance Corporation (PFC) is not a bailout but part of a structured financial deal. The loan is secured with Tata Sons shares and real estate cash flows, ensuring full repayment. Reports of default are deemed misleading and factually incorrect.

In a recent statement, the Shapoorji Pallonji Group (SP Group) dispelled rumors about its loan from Power Finance Corporation (PFC) being a bailout from default. The loan is backed by a twin security structure, including Tata Sons shares owned by the Mistry family and cash flows from its real estate franchise.

Refuting claims of financial distress, the SP Group emphasized that the loan's repayment is assured through its real estate cash flows. 'We are fortunate to work with PFC over the last 9 months to craft a unique proposal,' the group stated, underscoring the loan's secure nature.

The SP Group received approval from the PFC Board on June 14, 2024, following which a formal sanction letter was issued. The allegations of a bailout are 'grossly inappropriate and factually incorrect,' the SP Group declared. The company stressed its adherence to lender processes, countering reports questioning the loan's legitimacy.

(With inputs from agencies.)