SP Group Forms Parallel Business Entities for Real Estate and Infrastructure

SP Group - Parallel Business Entities for Real Estate and Infrastructure

The Shapoorji Pallonji (SP) Group has begun a financial re-engineering by establishing parallel corporate structures for real estate and infrastructure under its current holding firms, SP Finance and SC Finance, according to officials in the know.

Officials said that the decision would improve operational cash flows since investments in long-lead initiatives such as infrastructure and real estate generated timing mismatches that placed a significant amount of debt load on the balance sheet.

Before, all of its numerous industries, from real estate and construction to oil and gas, were held inside a single holding company. 

SPCL: According to people familiar with the situation, the new structure would guarantee that promoters may independently secure direct investments so that the core companies are not damaged and the long-lead enterprises are maintained properly.

SP Finance and SC Finance were both subsidiaries of Shapoorji Pallonji Co, which would no longer serve as the holding and operational body for group firms.