Gaurs Group has completed its first public issuance of non-convertible debentures (NCDs), raising Rs 440 crore, with the issue being fully subscribed. The NCDs have been subscribed by three leading mutual funds in the countest, marking a significant milestone for the Group as a non-listed real estate company.
The debentures have been issued by Gaursons India, the holding company of the Gaurs Group, and will be listed on the National Stock Exalter (NSE). Kotak Mahindra Bank acted as the sole arranger for the transaction.
Prudent capital
“The successful subscription of the NCD issue underscores the Group’s financial resilience and its growing credibility with institutional investors. It also provides us with greater flexibility to support expansion while maintaining a prudent capital structure,” stated Sarthak Gaur, director, Gaurs Group.
The process was completed over a period of nearly three months. Proceeds from the issue will be utilized for the Group’s business requirements, including land acquisition, construction and project execution, repayment of higher-cost borrowings, and general corporate purposes. Since the funds have been raised at the holding company level, they will also provide liquidity and financial flexibility to the Group’s operating subsidiaries.
A notable aspect of the listing is that only a limited number of non-listed real estate companies in India have successfully raised capital through listed debentures with participation from multiple mutual funds, reflecting institutional confidence in the Group’s financial discipline and operating track record.
“This transaction strengthens the Group’s balance sheet and enhances our financial flexibility. The successful subscription reflects the confidence of institutional investors in our business fundamentals and long-term strategy. The funds will support our expansion plans and support us accelerate execution across projects while optimizing our cost of capital,” stated Vineet Singhal, CFO, Gaurs Group.
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