21 March 2024 – The nation’s first data centre building company, Shapoorji Pallonji Group, is leaving the industry. For Rs 700 crore, SP Group sold the company to a group of investors that included up to 30 people, making it a unique M&A transaction. In most buyout agreements, the number of acquirers is restricted. Yash Kela, Nikhil Vora, Ashish Kacholia, and Mukul Mahavir Agrawal were among the individual investors in the company.
Subject to the lenders’ permission, the lucrative business with a revenue of between Rs 400 and Rs 500 crore would be spun out from Sterling and Wilson, an SP Group subsidiary, into a new company.
Sterling and Wilson will use the money raised from the sale of the data centre construction company to reduce their debt. The chairman, Khurshed Daruvala, controls 33% of Sterling and Wilson, with SP Group owning 67% of the company.
Conclusion
In addition to the thirty people, the data centre building industry has attracted the interest of twelve domestic institutional investors, such as Alchemy Capital and Capri Global Holdings. The investors have contributed capital to the firm that is set to be split off through convertible debentures. The debentures will be converted into equity when lenders have approved the restructure.
