Gaurs Group Secures ₹440 Crore via Maiden NCD Issuance: A Strategic Move for Growth
Gaurs Group, a prominent real estate developer in Delhi NCR, has successfully raised ₹440 crore through its maiden public issuance of non-convertible debentures (NCDs). This significant achievement marks a pivotal moment in the company's capital-raising journey and underscores the strong institutional confidence in the Group’s business fundamentals and growth strategy.
The debentures were floated by Gaursons India, the parent company of Gaurs Group, and will be listed on the National Stock Exchange (NSE). Kotak Mahindra Bank played a crucial role as the sole arranger of this deal. The entire fund-raising process took nearly three months, reflecting the meticulous planning and execution required for such a significant financial undertaking.
According to the company, the proceeds from the NCD issuance will be utilized across various business needs, including land acquisition, construction, project execution, repayment of higher-cost borrowings, and other general corporate purposes. Since the funds were raised at the holding company level, they will also enhance liquidity and financial flexibility for the Group’s operating subsidiaries.
Sarthak Gaur, Director of Gaurs Group, expressed his satisfaction with the outcome, stating, “The success of our maiden Public Issue of Non-Convertible Debentures indicates the increasing trust of investors in our governance standards. This issue gives us more flexibility to support our expansion plans while maintaining a prudent and balanced capital structure.”
The timing of this fund-raising drive is particularly strategic, as it aligns with the growing trend among real estate developers to turn to the capital market for diversified sources of finance. The improvement in the fundamentals of the real estate sector has made NCDs a favored tool for established developers to access long-term capital at reasonable costs while maintaining control over ownership.
Gaurs Group is a well-known presence in both the residential and commercial real estate markets in Delhi NCR. The company has a diverse portfolio that includes townships, group housing projects, and integrated developments. In recent years, Gaurs Group has been focused on strengthening its balance sheet to prepare for future growth prospects.
Experts in the sector have noted that the smooth participation of institutional firms in such transactions indicates an increasing maturity level in the Indian real estate industry, driven by regulatory changes. The current infusion of funds is expected to expedite project completion schedules and further solidify Gaurs Group's position in the market.
This transaction also places Gaurs Group among a growing list of property developers who are leveraging Debt Capital Markets to optimize their cost of funds and ensure sustainable growth. As the real estate sector continues to evolve, Gaurs Group's strategic financial moves are poised to drive its expansion and success in the coming years.
