Leading real estate developer Vipul Limited has raised a sum of Rs.150 crore or $23 million from the Edelweiss Group, one of the country’s biggest financial services companies as per its official statement. The Gurgaon-based realty developer raised the money through NCDs or non-convertible debentures with the tenor being set at 54 months. The proceeds will be deployed for completing the development of the premium Aarohan Residencies project which is located along the tony Golf Course Road in one of Gurgaon’s most prime locations.
According to the Managing Director at Vipul Limited, Punit Beriwala, this round of fund-raising will help the company fast-track construction and development for the Aarohan Residencies project along with enhancing its overall visibility. The deal structure will also ensure better optimization of cash flow according to him. Vipul Limited operates in both commercial and residential categories and is presently developing projects across Ludhiana, Gurgaon, Faridabad, Bhubaneswar and Bawal.
The company has reportedly delivered more than 8 million sq. ft. since its inception along with a few projects that were developed as joint ventures. Several developers have been raising capital to stay unscathed in tough market conditions. Motilal Oswal Real Estate offered support to a project helmed by ATS Infrastructure and pumped in Rs.120 crore for the same. ATS Infrastructure also got Rs.200 crore for another mixed-use project called Knights Bridge. These funds were secured from ASK Property Investment Advisors.
The Logix Group has raised Rs.900 crore from PNB Housing Finance while Reliance AIF and Piramal Housing Finance have provided close to Rs.300 crore to AIPL, another real estate developer based in Gurgaon. According to reports, the real estate sector managed to draw Rs.292 crore by way of debt and other funding in the first 6 months of this calendar year. This is more than Rs.121 crore which flowed into the sector for the 6 months that concluded in December, 2016.