Shapoorji Pallonji Group Share Price Update: Mega Rs 8,000-Crore IPO of Realty Arm Kicks Off

Market Performance: Real Estate Stocks Under Pressure

The Indian real estate sector is going through a quiet patch, with several realty stocks showing significant drops over the past six months.

• Macrotech Developers: down 23.2%
• Shriram Properties: down 18.99%
• Keystone Realtors: down 22.31%
• Suraj Estate Developers: down 20.48%
• Signature Global: down 28.97%

Even established players like DLF, Godrej Properties, and Prestige Estates have experienced declines of 20.43%, 26.69%, and 11.97% respectively. In this backdrop, Shapoorji Pallonji Group’s upcoming IPO comes at a critical time for the sector.

Shapoorji Pallonji Group Initiates Rs 8,000-Crore IPO for Realty Arm

Mumbai-based diversified conglomerate Shapoorji Pallonji Group, led by billionaire Shapoor Mistry, has officially engaged investment banks to launch its real estate arm’s IPO. The group aims to raise over Rs 8,000 crore to unlock value and reduce debt at the promoter and group levels.

The IPO is in its early stages, and the final size may vary depending on market conditions closer to the launch.

Key advisors and banks involved:

• Investment banks: JM Financial, Motilal Oswal, Morgan Stanley, SBI Capital, UBS, HDFC Bank
• Legal counsel: Trilegal (company counsel), AZB & Partners (banks’ counsel), Sidley Austin (foreign counsel)

The IPO is expected to include a mix of primary and secondary share issuance, although exact details are yet to be finalized.

Shapoorji Pallonji Real Estate: Company Footprint

The realty arm of the 155-year-old conglomerate has an extensive portfolio with a development potential exceeding 142 million sq. ft. The projects span across key Indian cities:

• Mumbai, Thane, Pune, Kolkata, Bengaluru, Gurugram

Notable projects include:

• Luxury housing: BKC 9 Mumbai, The Odyssey Mumbai, Wildernest Pune, Golfland at Vanaha Pune
• Affordable housing: “Joyville” brand
• Commercial workspaces: SP Infocity (Pune, Nagpur, Manesar)
• Redevelopment ventures: SD Corp (in collaboration with Dilip Thacker)

This mix of residential, luxury, affordable, and commercial projects gives the group a diversified real estate footprint.

Debt Repayment and Financial Strategy

Shapoorji Pallonji Group carries a significant debt burden. Promoter-level debt held by the Mistry family is estimated at Rs 25,000–30,000 crore, roughly half of the group’s total debt of Rs 55,000–60,000 crore.

Key steps taken to manage debt include:

• Pledged entire stake in Tata Sons to refinance debt
• Sale of port assets: 56% stake in Gopalpur Port to Adani Ports, Dharamtar port to JSW Group
• Rs 14,300 crore raised in 2023 via rupee-denominated zero-coupon NCDs with a yield of 18.75%

Earlier, the group’s flagship engineering firm, Afcons Infra, raised Rs 5,430 crore in a 2025 IPO, with debt repayment being a key objective.

FAQs

Q1: What is the total development potential of Shapoorji Pallonji Real Estate?

• Over 142 million sq. ft. across residential, luxury, and commercial projects.

Q2: Which cities does the group have a presence in?

• Mumbai, Thane, Pune, Kolkata, Bengaluru, Gurugram

Q3: How much debt does the promoter family hold?

• Approximately Rs 25,000–30,000 crore, half of the total group debt.

Q4: What are some flagship projects of the realty arm?

• BKC 9 Mumbai, The Odyssey Mumbai, Wildernest Pune, Golfland at Vanaha Pune, and affordable housing brand “Joyville.”

Q5: Which banks and legal advisors are managing the IPO?

• Banks: JM Financial, Motilal Oswal, Morgan Stanley, SBI Capital, UBS, HDFC Bank
• Legal counsel: Trilegal, AZB & Partners, Sidley Austin

Summary: A Strategic IPO Amid Challenging Markets

The Shapoorji Pallonji Group’s real estate IPO represents one of the largest upcoming issues in the sector. With over Rs 8,000 crore at stake, the IPO aims to strengthen the group’s financial position while leveraging its strong footprint across luxury, affordable, and commercial real estate projects.

Despite a subdued market environment for realty stocks, the IPO signals a significant strategic move by the group to unlock value, manage debt, and set the stage for future growth.

For investors tracking the Shapoorji Pallonji Group share price today, this IPO will be a key event shaping market sentiment and portfolio decisions in the real estate segment.

Source: Moneycontrol