Latest news with #TataSons
India.com
11 hours ago
- Business
- India.com
This Indian company gets Rs 290904000000 loan from..., not Ratan Tata's Tata Group, Mukesh Ambani's Reliance, Narayana Murthy's Infosys, name is....
This Indian company gets Rs 290904000000 loan from..., not Ratan Tata's Tata Group, Mukesh Ambani's Reliance, Narayana Murthy's Infosys, name is... One of the country's largest industrial houses – Shapoorji Pallonji Group – has completed a USD 3.4 billion (aprox Rs 290904000000) financing in the country's biggest ever private credit deal. The company has received a record loan (non-convertible debenture) from a Germany's Deutsche Bank. Notably, this is the largest private credit deal outside United States. The group has raised this money by pledging a part of their stake in Tata Sons. The loan is for three years at an interest rate of 19.75 percent, which will be paid at the end of the year. Earlier, the interest rate on the loan taken by the SP Group was slightly lower. In 2023, the group's company Goswami Infratech raised USD 1.7 billion at an 18.75% interest rate. Where Will The Money Be Used? A company will use a new loan to consolidate existing debt and grow its real estate and engineering, procurement, and construction (EPC) operations. This financing strategy, according to one investor, offers large corporations a novel long-term funding solution. The Investment? Notably, three types of investors have invested in this entire funding. First, those who have already invested in Sterling bonds. Second, those who have already invested in Goswami bonds. And third, new private credit investors from the US, UK, Hong Kong, Singapore and India. The bank has also roped in several international credit funds to reduce its risk. BlackRock has invested USD70 million, Sona USD180 million, Morgan Stanley Investment Management USD60 million and PIMCO USD45 million. In this way, all of them together have invested about USD355 million. Apart from this, Ares has separately invested USD500 million. To reduce the risk, the bank roped in several international credit funds. Black rock has invested USD 70 million, Sona USD180 million, Morgan Stanley Investment Management USD60 million and PIMCO USD45 million. Farallon Capital has also invested USD596 million. Davidson Kempner and Cerberus Capital have also invested USD401 million and USD474 million, respectively. Loan Was Received On This Condition A bank has provided a loan to SP Group in exchange for its 9.2% stake in Tata Sons, held through Sterling Investment, Shapoorji Pallonji Real Estate, and SP Energy (an oil and gas company). This transaction marks the first major corporate bond issuance under revised Foreign Portfolio Investor (FPI) regulations. These new rules allow foreign investors to utilize the General Limit Route, eliminating the previous restrictions associated with the Voluntary Retention Route.
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Business Standard
a day ago
- Business
- Business Standard
Shapoorji Group bags $3.35 bn in largest private deal led by Deutsche Bank
The $3.35 billion financing was raised via 3-year NCDs at a 19.75 per cent annual yield, up from last year's 18.75 per cent when Goswami Infratech raised $1.7 billion in debt Rimjhim Singh New Delhi Deutsche Bank has planned the largest private credit transaction outside the United States by raising $3.35 billion for the Shapoorji Pallonji (SP) Group. The infrastructure conglomerate leveraged a portion of its Tata Sons stake as collateral, attracting commitments from major global investors, including BlackRock and Morgan Stanley, according to a report by The Economic Times. The financing was secured through three-year non-convertible debentures (NCDs) offering a 19.75 per cent yield, compounded annually and payable at maturity. This marks a rise from earlier debt issuances, which commanded yields approximately one percentage point lower. In 2023, SP Group's Goswami Infratech had raised $1.7 billion at an 18.75 per cent yield, the news report said. Deutsche Bank's significant commitment and syndication The $3.35 billion funding round brought together three distinct investor groups: existing bondholders of Sterling bonds, current investors in Goswami bonds, and a new cohort of private credit investors from the US, the UK, Hong Kong, Singapore, and India. Deutsche Bank spread its exposure across international credit funds, with BlackRock acquiring $70 million, Sona Capital investing $180 million, Morgan Stanley Investment Management putting in $60 million, and PIMCO contributing $45 million. This consortium totalled around $355 million, complemented by a separate $500 million investment from Ares Capital. Farallon Capital, a longstanding creditor to the SP Group, invested $596 million (approximately ₹5,100 crore). Other key participants included Davidson Kempner and Cerberus Capital, committing $401 million and $474 million respectively. Secured by stake in Tata Sons and real estate arms The debt is secured against SP Group's 9.2 per cent shareholding in Tata Sons, held through Sterling Investment, as well as assets in Shapoorji Pallonji Real Estate and SP Energy — the group's oil and gas business. This issuance, exclusively arranged by Deutsche Bank, represents the first large-scale corporate bond placement following changes in Foreign Portfolio Investor (FPI) norms, which now permit offshore investment under the general limit route instead of the more restrictive Voluntary Retention Route (VRR), the news report said. Regulatory changes and timing impact the deal Originally aiming for a March close, the transaction was completed six weeks later, delayed by geopolitical uncertainties. While part of the proceeds will refinance existing debt and support growth in SP Group's real estate and engineering, procurement, and construction (EPC) businesses, the deal is expected to transform capital access for large Indian conglomerates, the news report said.
Time of India
2 days ago
- Business
- Time of India
Tata Sons' top official gets clean chit for link with Rs 90-crore family firm
The Tata Sons board has cleared company secretary Suprakash Mukhopadhyay of any violation of the Tata code of conduct . This decision was taken on Thursday after the board reviewed an internal report on his involvement with Divinion , a financial services firm owned by his family. Sources familiar with the matter told The Times of India that the directors looked at the report in detail and accepted its findings. The report said that while Mukhopadhyay did not make the necessary disclosures to the right authority within Tata Sons, he had not intentionally broken the rules. Mukhopadhyay had come under scrutiny for either helping or trying to raise money from current and former Tata employees, as well as other people connected to Tata Sons. Tata Sons Chairman N Chandrasekaran had ordered the internal investigation after concerns were raised about a possible conflict of interest between Mukhopadhyay's connection to Divinion Advisory Services and his duties within the group. 'The board extensively discussed the report and ultimately gave Mukhopadhyay a clean chit,' sources told ToI. As per the Tata code of conduct, a conflict of interest happens when an employee gains unfair benefits for themselves or family members. If such a situation is not disclosed and later found out by management, it can result in disciplinary action. In the case of listed companies, the Securities and Exchange Board of India (Sebi) can also impose penalties for failing to disclose such matters. Some Tata executives told those writing the report that they had invested in Divinion after being approached by Mukhopadhyay's daughter through her father, ToI had reported. They said they were not aware of his link to the firm. The full report was shared with all Tata Sons board members. Live Events On Wednesday, the Tata Trusts board — which is the parent organisation of Tata Sons — had also discussed the report. It suggested that its nominated directors should take actions that are correct and fair. Divinion was set up in December 2020 and manages assets worth more than Rs 90 crore. The company is owned equally by Mukhopadhyay's wife and two daughters, each holding a 33.3% share. Divinion sponsors the Divinion Alternative India Fund (DAIF), which has launched a scheme named Divinion Dynamic Fund. The team running Divinion includes people who have worked in the Tata Group in the past or have long-standing links with it. Former TCS CFO S Mahalingam is one of Divinion's directors. Its CEO is Hormuz Bulsara, who used to be COO at Tata Asset Management. Chartered accountant T P Ostwal, whose firm has worked with Tata entities for years, is also on Divinion's board. His firm audited Divinion in FY21, and Tata Sons in FY23 and FY24. Another firm, KBJ & Associates, which audited Divinion for FY22 to FY24, also worked with some TCS subsidiaries in FY24. The Tata Sons board also reviewed the company's Q4 FY25 financial results at the same meeting. Economic Times WhatsApp channel )
Time of India
3 days ago
- Business
- Time of India
Tata Sons board gives senior executive clean chit over link with family co
MUMBAI: The board has exonerated company secretary Suprakash Mukhopadhyay of any breach of the Tata code of conduct. This comes after the board, on Thursday, reviewed an internal investigation report regarding his involvement and connection with Divinion, a financial services company owned by his family. Tired of too many ads? go ad free now The directors reviewed and accepted the report, which concluded Mukhopadhyay did not intentionally violate the code of conduct despite failing to make necessary disclosures to the appropriate authority within Tata Sons, sources familiar with the matter said. Mukhopadhyay faced scrutiny for facilitating or seeking investments from present and past Tata employees, and external parties associated with Tata Sons. , chairman of Tata Sons, had commissioned the report after concerns were raised about potential conflict of interest between Mukhopadhyay's connection to Divinion Advisory Services and his role within the group. "The board extensively discussed the report and ultimately gave Mukhopadhyay a clean chit," sources said. On Wednesday, the board of Tata Trusts, the parent of Tata Sons, also deliberated on the report and recommended that its nominated directors act in accordance with what is right. Divinion, established in Dec 2020, manages assets worth more than Rs 90 crore. Mukhopadhyay's wife and two daughters own 33.3% each in Divinion, which sponsors the Divinion Alternative India Fund. DAIF had launched a scheme called Divinion Dynamic Fund. The financial services firm's management team and board members include former employees and affiliated professionals. Former TCS CFO S Mahalingam serves as a director of Divinion, while former Tata Asset Management COO Hormuz Bulsara is the CEO. CA T P Ostwal, whose firm has had a long association with Tata entities, also sits on Divinion's board. His firm audited Divinion in FY21 and Tata Sons in FY23 and FY24. KBJ & Associates, Divinion's auditor for FY22-FY24, worked with some TCS subsidiaries in FY24. The Tata Sons board also reviewed the company's Q4 FY25 financial results, among other matters.
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Business Standard
3 days ago
- Business
- Business Standard
Tata Sons board accepts internal panel report on company secretary
Tata Sons Ltd.'s board today reviewed and accepted the findings of a three-member internal panel, which concluded that Company Secretary Suprakash Mukhopadhyay did not wilfully breach the group's code of conduct, nor did he seek personal gain at the company's expense, according to people familiar with the matter. Mukhopadhyay came under scrutiny for allegedly encouraging a former colleague to join or invest in Divinion Advisory, a wealth management firm linked to his wife and daughter. The firm includes several former Tata employees and is associated with professionals such as chartered accountant T. P. Ostwal, whose firm has previously worked with Tata Sons. Divinion's auditors have also served subsidiaries of Tata Consultancy Services. As per media reports, Mukhopadhyay had approached a few Tata officials to invest in the company. Following these allegations, Tata Sons constituted a committee to investigate the matter. The panel concluded that Mukhopadhyay, a Tata group veteran, did breach the Tata group's Code of Conduct, but that the violation was neither intentional nor aimed at making personal gains at the company's expense. Mukhopadhyay, who retired in November 2024, continues to serve on an extension. The report was discussed in detail at the board meeting today, and the panel's findings were accepted. The board also reviewed Tata Sons' financial results for the year ended March 2025, according to people familiar with the matter. Additionally, it was briefed on the upcoming initial public offering (IPO) of Tata Capital Ltd., its financial services subsidiary, which is scheduled for later this year. The meeting also covered Tata Sons' investment in the rights issue of Tata Projects Ltd., and included performance updates on key group companies, including Air India, Tata Digital, and other unlisted units.
