Shapoorji Pallonji Group has reportedly put plans to list its real estate business on hold as the debt-laden conglomerate explores other capital-raising options. Attention has shifted to its 18.4% Tata Sons stake, with a proposed selective capital reduction potentially generating around Rs 25,000 crore for the Mistry family entities involved

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The Shapoorji Pallonji (SP) Group has reportedly put plans for an initial public offering (IPO) of its real estate business on hold as the conglomerate explores alternative ways to raise capital and reduce debt, Moneycontrol reported.

An IPO of Shapoorji Pallonji Real Estate (SPRE) had been considered among the options to raise funds, with the group's debt estimated at more than Rs 55,000 crore.

However, an investment banker familiar with the matter said there was currently no active work on the proposed listing.

The development comes as attention returns to the SP Group's 18.4% holding in Tata Sons amid discussions surrounding a potential listing of the Tata Group holding company.

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SPRE has 22 projects under construction

The SP Group has consolidated a significant portion of its property interests under SPRE, which operates across residential and commercial real estate.

Its key platforms include Joyville, focused on affordable and mid-income housing and townships, and SD Corp, a redevelopment joint venture with Mumbai developer Dilip Thacker.

According to Tracxn data, Joyville recorded revenue of $320 million in FY25 and a net profit of $1.4 million. SD Corp reported revenue of about $54 million and a loss of $18 million.

SPRE has 22 projects under construction, including 11 in Pune and six in Mumbai. It also has projects in Kolkata, Bengaluru, Gurugram and Thane.

SPRE says it has completed 19 million square feet of development and has a pipeline of around 140 million square feet. The group also controls more than 2,000 acres of land.

Tata Sons stake comes into focus

With the SPRE IPO reportedly on the back burner, attention has shifted towards monetising part of the group's Tata Sons holding.

On Sept 17, Tata Trusts Chairman Noel Tata proposed a selective capital reduction under which Tata Sons would buy back around 3% of the stake held by two Mistry family entities.

Such a transaction could generate gross proceeds of approximately Rs25,000 crore, providing the SP Group with another potential route to unlock capital.

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