On account of debt issues and the covid pandemic, Shapoorji Pallonji Group has kept its logistics venture with ADIA (Abu Dhabi Investment Authority) on a hold, according to a report on Monday by Business Standard.
In this $1.2 billion venture with ADIA, the two partners had to raise the money in two tranches of $600 million each, in order to invest in logistics centres in the country, said the report quoting unnamed sources.
“Shapoorji was to put in $100 million and ADAI $500 million initially,” said the one of the sources quoted in the report while another unnamed person who had worked with the company before said that “Shapoorji is tackling its own debt issues and does not want to commit equity to a new venture.”
ADIA has been involved in deals with Shapoorji earlier as well, to buy commercial assets. Shapoorji has faced disruptions in its infrastructure and real estate businesses due to the pandemic.
The group has struggled with debt repayments and asset monetisation in the past as well.
Recently, the group defaulted on repayment to its listed subsidiary, Sterling & Wilson, which has given it another year to repay the loans.
The group also had to face legal objection from Tatas after striking a deal with Brookfield by pledging 18.4% stake in Tata Sons to raise Rs 3,750 crore of debt. The deal did not materialise because of opposition from Tata Sons. Share sale by Afcons Infrastructure and Eureka Forbes were deferred, making it further more tough for the group to monetise assets.
There have been no comments by Shapoorji Group or ADIA on the matter though.
