Gurgaon-based listed real estate developer Vipul Ltd has raised Rs 150 crore ($23 million) from financial services conglomerate Edelweiss Group, it said in a statement.
Vipul raised the capital via non-convertible debentures (NCDs) with a tenure of 54 months. It will use the proceeds to develop Aarohan Residencies, a residential project located on Golf Course Road in the heart of Gurgaon.
Punit Beriwala, managing director, Vipul, said, “The fund-raise will enable us to accelerate construction of Aarohan Residences and improve visibility of the project. The structure of the NCD deal will further ensure cash flow optimisation.â€
Vipul, which caters to both residential and commercial segments, is currently developing projects in Gurgaon, Ludhiana, Bawal, Bhubaneshwar and Faridabad. It claims to have delivered over 8 million square feet since inception, apart from some projects executed via joint ventures.
Of late, many developers have raised debt funding to stay afloat. Last month, Motilal Oswal Real Estate backed a project of North-based developer ATS Infrastructure with an investment of Rs 120 crore. The developer also received Rs 200 crore for a mixed-use project, Knights Bridge, from ASK Property Investment Advisors, the property investment arm of ASK Group.
Some other developers that have raised funds include Logix Group, which bagged Rs 900 crore from PNB Housing Finance, and Gurgaon developer AIPL, which got around Rs 300 crore from Piramal Group and Reliance AIF.
According to VCCEdge, the data research platform of News Corp VCCircle, the real estate sector attracted around Rs 292 crore in the first six of this calendar year, most of it in the form of debt.
That is up from the Rs 121 crore the sector attracted in the six months ended December 2016.