Shapoorji Pallonji Group plans to share sale of solar unit worth $1 billion

Cyrus Mistry

India’s Shapoorji Pallonji Group is planning to seek $1 billion by inviting outsider investors in its solar unit, as it commence on the asset sale’s series across 153-year-old conglomerate (large company) to reduce their debt.

Jai Mavani, Executive director at conglomerate’s flagship company, said the group Shapoorji Pallonji- owned by Pallani Mistry is likely to sell about 30 percent in his solar engineering arm of Sterling & Wilson Pvt.  Through pre-listing the stake sale, funds would be raised including invites of public offering.

Mavani said the procedure will include the separate listing of Eureka Forbes Limited, the water purification unit of publicly –traded Forbes & co. and followed by sales of commercial real estate. All these are the part of the process used to reduce debts.

In an exclusive interview on November 15, Mavani had said, “We have leveraged ourselves to the level that we believe is sustainable but, beyond a point, we want to create equity for ourselves.” He further said, “Be it Sterling & Wilson or Eureka Forbes, their real value is a multiple of what’s in the balance sheet.”

The $ 5.6 billion group is now leading one of the biggest affordable home projects, which had built the Sultan of Oman’s palace and is planning to trigger the market as debt funding became insufficient due to liquidity crunch in the last two years.

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