Shapoorji Pallonji group struggles to repay Rs 500 crore debt attributable to fundraising troubles

The promoters of Sterling and Wilson Photo voltaic Restricted (SWSL) — Shapoorji Pallonji and Firm Personal Restricted and Khurshed Daruvala — who have been to repay Rs 500 crore to the renewable energy firm by June have sought extension due to the fundraising troubles. Of the excellent mortgage quantity of Rs 2,563 crore (principal quantity of Rs 2,335 crore and curiosity of Rs 228 crore), the promoters have already repaid Rs 1,500 crore till March. The SWSL board authorised the brand new compensation plans of the promoters on Friday.

The SP group chairman Shapoor Mistry and Daruvala stated in a joint letter that they are going to make Rs 500 crore compensation together with the subsequent schedule by September 2020. They’ve about Rs 1,000 crore repayments pending.

“In these extraordinary and unprecedented circumstances, whereas we proceed to attempt in the direction of attaining the initially agreed upon milestone of June 2020, we apprehend that the subsequent instalment of Rs 500 crore envisaged to have been paid by June 30, 2020 would possibly spill past by just a few weeks. We reiterate our dedication to facilitate the entire cost throughout the outer deadline of September 30, 2020 underlining our intent to honour the dedication even throughout these tough instances,” the promoters stated within the letter.

Final yr, the Shapoorji Pallonji Group and the co-promoter Daruvala had did not honour their commitments made throughout Sterling and Wilson’s preliminary public providing (IPO) in August 2019 due to liquidity disaster. In December 2019, the board of SWSL accepted a revised schedule for facilitating compensation of the excellent mortgage due from Sterling & Wilson Personal Restricted and its subsidiary, Sterling and Wilson Worldwide FZE to SWSL and its subsidiary Sterling & Wilson Worldwide Photo voltaic FZCO.

In keeping with the revised schedule, now we have facilitated cost to the tune of Rs 1,500 crore as on date, stated the promoters. “This quantity consists of Rs 500 crore paid on March 31, 2020 regardless of the nation getting into into a whole financial and social lockdown because of the unfold of COVID-19. As you might be conscious, COVID-19, which has been recognised as a worldwide pandemic, has created a big disruption to financial exercise in India and globally. This has additionally created execution delays to our fund elevating plan that was envisaged in December 2019,” they added.

Whereas there may be nonetheless a risk of with the ability to fund Rs 500 crore by June 30, within the occasion of a delay, we are going to request the audit committee or the board for a gathering in order that we may apprise the members concerning the particular actions which can be underway at our finish, they stated within the letter.

SWSL, a number one world photo voltaic EPC and answer supplier with a presence in 25 international locations, had income from operations of Rs 5,575 crore within the final monetary yr. It has an orderbook of Rs 11,396 crore.

SWSL share value hit an higher circuit of 5 per cent at Rs 199.25 per share on the BSE at present after the corporate’s US-based subsidiary bagged the most important photo voltaic challenge within the nation.  The subsidiary has been awarded a $99 million (Rs 747 crore) contract to assemble a 194 MW challenge in the US.

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