Arvind SmartSpaces raises Rs 85 cr; to strengthen firm's balance sheet

The Arvind SmartSpaces Limited (ASL) board today approved the allotment of 68.5 lakh equity share worth Rs 85 crore to HDFC Capital Affordable Real Estate Fund-1 (H-CARE 1) and the ASL promoters at Rs 124 apiece. The company said the equity raised in this round will give a strong impetus to its growth initiative and strengthen the balance sheet.

"The investment by H-CARE 1 is testament to the resilience of the real estate sector and a recognition of the fact that corporate branded real estate companies with strong balance sheets are well-poised to capitalise on emerging opportunities in the real estate space," ASL said in a statement.

Sanjay Lalbhai, Chairman of Arvind SmartSpaces, said: "We are extremely happy to have HDFC Capital Advisors Limited as our strategic partner. This infusion of long term patient capital into the company will give us the flexibility to pursue strategic growth."

He said the enhanced equity base and low leverage give the company significant headroom to raise further capital to pursue value accretive opportunities. "This coming together of two of the most trusted brands and businesses in India, "HDFC" and "Arvind" will create tremendous value for all our stakeholders," Lalbhai said.

HDFC Capital Advisors Limited MD and CEO Vipul Roongta said this investment meets the company's objective to provide long-term, equity and mezzanine capital to marquee developers for the development of affordable and mid-income housing in India.

Arvind SmartSpaces MD and CEO Kamal Singal said the company feels there is a huge opportunity in real estate development in India especially in the post-pandemic era. "Organised developers  with  long term and organised  capital  are in a unique position to deliver customer-centric products and  solutions on a sustainable basis."

The conclusion of the transaction is subject to necessary approvals from the shareholders of ASL and the Securities and Exchange Board of India (SEBI).

Also read: IndiGo targets full capacity domestic flights by Dec, looks to raise funds