Gaurs Group has successfully raised ₹440 crore through its maiden public issuance of non-convertible debentures (NCDs), marking a significant milestone in the real estate developer’s capital-raising journey. The issue was fully subscribed and backed by three leading mutual funds, underscoring strong institutional confidence in the Group’s business fundamentals and growth strategy.
The debentures were floated by Gaursons India, which is the parent company of the Gaurs Group, and the debentures will be listed on the National Stock Exchange, NSE. Kotak Mahindra Bank has been the sole arranger of this deal. The entire procedure of raising funds took nearly three months.
According to the company, the proceeds from the NCD issuance will be utilised across multiple business requirements, including land acquisition, construction and project execution, repayment of higher-cost borrowings, and other general corporate purposes. Since the funds have been raised at the holding company level, they will also provide enhanced liquidity and financial flexibility to the Group’s operating subsidiaries.
Commenting on the development, Sarthak Gaur, Director, Gaurs Group, said that the success of the Group’s maiden Public Issue of Non-Convertible Debentures indicates the increasing trust of investors in the Group’s standard of governance. This issue gives us more flexibility to support our expansion plans while maintaining a prudent and balanced capital structure stated Mr. Gaur.
The fund-raising drive is a timely one given the trend amongst real estate developers turning to the capital market for diversified sources of finance owing to the improvement in the fundamentals of the real estate sector. NCDs have emerged as a favored tool for established developers for accessing long-term capital at reasonable costs with control over ownership.
Gaurs Group is a well-known presence in the residential as well as commercial real estate market in Delhi NCR and has a portfolio in townships, group housing projects, as well as integrated projects. The company has been working on increasing its balance sheet strength in preparation for future growth prospects.
Experts in the sector have observed that the smooth participation of institutional firms in such transactions indicates an increase in the maturity level of the Indian real estate industry due to changes initiated by the regulatory environment. In the Gaurs Group, the current infusion of funds is expected to expedite project completion schedules.
This transaction also makes the Group part of a growing list of property developers who are using Debt Capital Markets to help optimize cost of funds and ensure its strategies towards sustainable growth.
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