Shapoorji Pallonji launches $2.7bn bond tied to Tata Sons IPO
Shapoorji Pallonji Group (SP) launched last month a $2.7 billion bond, and it's turning heads among wealthy investors and family offices.
The bonds are backed by an exclusive pledge over Cyrus Investments's 9.185% direct stake in Tata Sons, but here's the catch: returns depend on Tata Sons eventually going public, which isn't guaranteed.
Near 19% yields attract major investors
These bonds offer a tempting three-year tenure with starting yields close to 19%, drawing in big names like Deutsche Bank and Sageoak Capital.
Still, experts are waving caution flags since the whole plan leans heavily on a Tata Sons IPO or other ways for SP to get cash.
Plus, with regulatory scrutiny on Tata Sons and SP facing ₹21,350 crore in debt, there's plenty of uncertainty for anyone thinking about jumping in.