/ -- Shapoorji Pallonji Infrastructure Capital Co. Pvt. Ltd, announced on 27th April 2020, the signing of definitive agreements to close the sale of 317 MWp of operational solar assets to KKR for approx. Rs 1,550 crs. The move is part of a series of initiatives taken by the SP Group to enhance liquidity, reduce debt and strengthen its balance sheet.
The proceeds of this sale will be primarily applied towards debt reduction and will also be applied towards funding the Group's under construction solar projects. This deal is expected to accelerate the pace of debt reduction at the SP Group. Over the last 6 months, the Group had reduced its debt by over Rs 600 Cr. With the consummation of this deal, SP Group debt is expected to further reduce by over Rs 1,000 Cr.
During FY20, despite tight market conditions, various SP Group companies managed to lock in asset monetizations worth over Rs 4,200 crs. The Group has also been successful in diversifying its sources of capital, with a significant reduction in short term debt exposure. The Group's mutual fund exposure has sharply declined by over 77% over the last 2 years.
The Mistry family, the Promoters of the SP Group, have infused over Rs 4,300 crs over the last two years to strengthen the Group's balance sheet. The net worth of SPCPL, the Group Holding Company, improved significantly, growing by over 70% over the last 2 years. Further, SPCPL's contingent liability reduced by Rs 2,700 crs in the last 15 months.
The 155-year-old SP Group also recorded a historic high in its construction order book, which was in excess of Rs 1.1 lac crore as on March 20. The Real Estate arm of the Group, also grew in a tough market, recording sales of over 3,300 apartments and improving collections by 60% year on year. The Group's strategy to unlock value from it's extensive, high quality asset base, improve profitability and free cash flow from all ongoing operational businesses and continually strengthen the balance sheet, will be relentlessly and unwaveringly pursued during FY21 and beyond.
About Shapoorji Pallonji And Company Pvt Ltd
Shapoorji Pallonji And Company Pvt Ltd, established in 1865 in India, is a global diversified institution, with a leading presence in the sectors of Engineering & Construction, Infrastructure, Real Estate, Water, Energy and Financial Services. A strong employee base of over 70,000 people, deliver end-to-end solutions across 70 nations. We build mega-structures, develop multifaceted iconic landmarks, drive innovative technologies in water management, renewable energy, oil & gas and power, with a focus on good governance and sustainable development, to engineer a better planet.
To know more, please visit: www.shapoorjipallonji.
Disclaimer: No Business Standard Journalist was involved in creation of this content
