Shapoorji Pallonji Group Initiates Talks for IPO of Real Estate Business

Following the successful IPO of its flagship construction company, Afcons Infrastructure, the Shapoorji Pallonji (SP) Group has started discussions with investment banks to potentially take its real estate business public. This move comes as the company seeks to reduce its promoter-level debt further.

The SP Group held initial talks with several investment banks last week, with banker appointments for the IPO expected to take place next month, provided the group decides to proceed with the listing.

Earlier this year, SP Group established a holding company, Shapoorji Pallonji Real Estate, to consolidate its real estate assets under a unified structure. This strategic move aims to simplify the group’s corporate framework and enhance the monetization of its real estate holdings.

The proposed IPO is expected to raise approximately Rs 4,000-5,000 crore, with a significant portion of the funds coming from a secondary share sale. Additionally, part of the raised capital will be used to reduce debt within the real estate business.

A Vast and Diverse Real Estate Portfolio

Shapoorji Pallonji Real Estate boasts an extensive development potential of over 142 million square feet and operates in major cities such as Mumbai, Pune, Bangalore, Gurugram, and Kolkata. The company’s portfolio includes luxury apartments, premium residences, affordable homes for mid-income buyers, and one of India’s largest mass housing projects, Shukhobrishti in Kolkata, where 20,000 affordable homes are being developed.

Notable residential projects include BKC 9, BKC 28, and The Odyssey in Mumbai; Wildernest and Vahana in Pune; and Parkwest 2.0 in Bengaluru. The group also has several residential developments under the Joyville brand across Mumbai, Pune, and Gurugram.

In the commercial real estate space, SP Group’s SP Infocity portfolio features office properties in Pune, Nagpur, and Manesar.