Top Investment Banks Engaged
The syndicate of investment banks advising the deal reportedly includes JM Financial, Motilal Oswal, Morgan Stanley, SBI Capital Markets, UBS, and HDFC Bank. The IPO is expected to be structured as a mix of primary and secondary share sales, allowing both fresh capital infusion and partial exits for existing stakeholders.
On the legal side, Trilegal has been appointed as company counsel, AZB & Partners as counsel to the banks, and international law firm Sidley Austin as foreign counsel. The Shapoorji Pallonji Group has declined to comment publicly on the development.
Why the IPO Matters
The proposed listing comes at a crucial time for the 155-year-old conglomerate, which has been actively pursuing asset monetisation to manage its debt obligations. Promoter-level debt held by the Mistry family is estimated at ₹25,000–30,000 crore, nearly half of the group’s total debt burden.
Proceeds from the IPO are expected to be used primarily to reduce group-level debt and strengthen the balance sheet. Analysts believe a successful listing could significantly improve financial flexibility for the group.
Subdued Realty Market a Key Challenge
The timing of the IPO coincides with a challenging phase for listed real estate stocks. Over the past six months, several recently listed developers have seen double-digit declines in share prices. Even established players such as DLF, Godrej Properties, and Prestige Estates have faced notable corrections.
Despite the subdued market sentiment, bankers remain optimistic about the long-term fundamentals of India’s real estate sector, especially in premium residential and commercial segments.
Extensive Realty Footprint
Shapoorji Pallonji Real Estate has a development potential exceeding 142 million square feet across key Indian cities, including Mumbai, Thane, Pune, Kolkata, Bengaluru, and Gurugram. Its portfolio spans luxury housing, mid-income residential projects, and affordable homes marketed under the “Joyville” brand.
The group is also present in commercial real estate through its SP Infocity projects in Pune, Nagpur, and Manesar. Additionally, its joint venture SD Corp focuses on redevelopment projects in Mumbai.
Part of a Broader Deleveraging Strategy
The realty IPO is the latest step in a series of debt-reduction initiatives undertaken by the group. In November 2025, its engineering and construction arm Afcons Infrastructure raised ₹5,430 crore through an IPO. Earlier asset sales included divestment of stakes in ports and infrastructure projects.
Market observers see the proposed listing as a critical milestone that could reshape the financial trajectory of the Shapoorji Pallonji Group, provided market conditions remain supportive.
