SP Group Seeks Two-Month Extension on ₹14,300 Crore Bonds

Shapoorji Pallonji Group has cut its refinancing target by ₹3,500 crore and is asking creditors for a two-month extension on ₹14,300 crore of maturing bonds, ET reported. The original ₹28,500 crore plan, arranged through Deutsche Bank, was expected to close by mid-summer. Rising hedging costs delayed the debt raising, pushing the conglomerate into last-minute negotiations.

Lenders are now weighing whether the extension signals deeper liquidity strain or a temporary timing mismatch. SP Group has been selling assets – including a stake in its flagship real estate arm – to reduce leverage. Those sales have not kept pace with near-term maturities. The ₹14,300 crore block covers bonds coming due over the next few months. A two-month window gives the group until late summer to close the Deutsche Bank-led facility.

The read-through for Indian financials is indirect. Banks with high exposure to real estate and infrastructure loans will watch whether this becomes a template for other large borrowers struggling with rising dollar hedging costs. The rupee's volatility has made offshore borrowing more expensive, pushing some Indian corporates toward domestic markets or shorter tenors.

SP Group's asset base – including prime Mumbai real estate and listed stakes – still provides cover. The negotiating timeline will tell whether this is a close call or the start of a wider credit event in the Indian corporate bond market.