Bondholders of Shapoorji Pallonji Group are attempting to offload debt linked to one of its units as prolonged refinancing negotiations test investor patience.
The Indian conglomerate, the country's largest private credit borrower, faces mounting pressure to resolve the restructuring of ₹8,343 crore in debt.
People familiar with the matter indicate that the delay has eroded confidence among some lenders, prompting early exit attempts.
The move by bondholders signals growing fragility in India's corporate credit market.
With foreign institutional investors already pulling back from Indian financial assets, the Shapoorji situation adds to broader concerns about liquidity and valuation.
Rising US Treasury yields have exacerbated these pressures, making refinancing more expensive and less attractive for highly leveraged borrowers.