Arvind SmartSpaces raises ₹85 crore from HDFC Capital

BENGALURU: Real estate firm Arvind SmartSpaces Ltd (ASL) has raised Rs85 crore from HDFC Capital Affordable Real Estate Fund-1 (H-CARE 1).

The board of directors of ASL on Friday approved the allotment of 68.5 lakh equity share aggregating to about Rs85 crore to H-CARE 1 and promoters of ASL at the price of Rs124 per share as per SEBI ICDR Regulations 2018.

The equity raised in this round will give strong impetus to this growth initiative and strengthen the balance sheet, the company said.

Sanjay Lalbhai, chairman, ASL, said, “…This infusion of long-term patient capital into the company will give us the flexibility to pursue strategic growth across all the segments that we operate in. The enhanced equity base and low leverage gives the company significant headroom to raise further capital to pursue value accretive opportunities.”

“This investment is an extension to our existing partnership platform set up in 2019, with Arvind SmartSpaces. It meets our objective to provide long-term, equity and mezzanine capital to marquee developers for the development of affordable and mid-income housing in India. Further, this is in line with HDFC Capital’s strategy of partnering with top rated developers with a good track record of development and delivery. We believe that consolidation in the residential sector is a given and that developers with strong brand presence shall capture a disproportionate share of the market,” said Vipul Roongta, MD and CEO of HDFC Capital Advisors.

The conclusion of the transaction is subject to necessary approvals from shareholders of ASL and the Securities and Exchange Board of India (Sebi). Metta Capital was the exclusive financial advisor to ASL for this transaction.

Kamal Singal, MD and CEO of ASL, said, “The company feels that there is a huge opportunity in real estate development in India especially in the post pandemic era. Organized developers with long term and organized capital are in a unique position to deliver customer centric products and solutions on a sustainable basis. This partnership will not only provide resources to pursue growth but also help in building the business further by leveraging the brands and legacy of trust that both the partners bring to the business.