One of Indias Oldest Engineering and Construction Businesses, Shapoorji Pallonji, Returns INR 12450 crore to Lenders

Shapoorji Pallonji And Company Pvt Ltd (SPCPL) said on Thursday that it has returned its lenders Rs 12,450 crore in order to leave the COVID one-time resolution (OTR) plan early.

"The Mistry family's investment of over Rs 5,100 crore in the firm over the previous year permitted the rapid repayment of lenders," SPCPL said in a statement.

Additionally, SPCPL said that it realised significant monetisations of Rs 3,750 crore from two of its properties, Sterling Wilson Renewable Energy Limited and Eureka Forbes Limited.

On March 31, 2021, the company's OTR plan was unanimously approved by all of its lenders.

"The resolution proposal requested simply a two-year extension of lenders' repayment timeframes and did not include a single rupee in haircuts for lenders. The consortium of lenders was headed by the State Bank of India, which served as the facility agent."

According to SPCPL, their OTR was the biggest in India and "probably" the first to be entirely returned within a year of introduction.

SPCPL is one of India's oldest engineering and construction businesses, having a diversified portfolio of holdings that includes real estate, oil & gas, and infrastructure. Its construction division has a backlog of about Rs 30,000 crore in orders.

A spokesperson for the Shapoorji Pallonji Group commented on the news, saying, "We are delighted to have paid off all of our lenders ahead of schedule. This development is expected to have a favourable effect on the Group's credit outlook. We appreciate the confidence placed in us by all of our stakeholders, particularly our business partners and lenders. We are convinced that as a Group, we will emerge stronger."