The Shapoorji Pallonji (SP) Group has embarked on a business financial re-engineering by creating parallel structures for its real estate and infrastructure units under its existing holding companies, SP Finance and SC Finance, officials in the know said.
The move will help improve operating cash flows since investments in long-lead businesses like infrastructure and real estate create timing mismatch, which puts debt burden on the balance sheet, officials said. Earlier all its diverse businesses, ranging from real estate and construction to oil and gas, were housed under one holding company – Shapoorji Pallonji and Co (SPCPL). This structure will help promoters to ensure separate direct investments so that the core businesses are not impacted.
