The Shapoorji Pallonji Group is planning to sell its solar and road assets by March 2020 to reduce its debt by approximately Rs 4,000 crore. The company told Bloomberg that they are in talks with prospective investors to execute their plans of selling their assets as well as bringing in investors for their port business.
The 154-year old group witnessed a massive downgrade of its flagship firm Shapoorji Pallonji & Co. due to the slowdown in the core sector. Responding to the slowdown, the company is planning the sale to improve its balance sheet and credit ratings amid the slowdown in the non-banking financial sector (NBFCs).
According to MoneyControl, the Pallonji Group might face hardship in getting a desirable deal in return for their assets during the economic downturn. "There are many sweet deals, giving investors plenty to choose from. The group may have to sell at a discount," Mathew Antony, managing partner at Aditya Consultancy, told Bloomberg.
The real estate vertical has been sustaining prolonged lender pressure while telecommunication majors like Reliance Group and Essel Group have been facing financial challenges.
With bad loans and non-performing assets of major companies piling up due to the liquidity crisis and the slowdown in the sales, the banks have thin-lined their credits to certain sectors.
However, Shapoorji Pallonji filed a total revenue of about Rs 50,000 crore in the financial year 2018-19. The company employs more than 60,000 people. The real estate giant, despite the slowing real estate sector, has been performing better than most of its peers.