11 Sep , 2021 By : monika singh
New Delhi: Realty firm Arvind SmartSpaces Ltd (ASL) has raised around Rs 85 crore equity capital from HDFC Capital's real estate fund and its promoters by issuing preferential shares. ASL said in a statement that its board approved the allotment of 68.5 lakh equity shares, aggregating to about Rs 85 crore, to HDFC Capital Affordable Real Estate Fund-1 (H-CARE 1) and the promoters of ASL for Rs 124 per share.
Post allotment of shares, H-CARE 1 will have about a 9.5 per cent stake in the company.
"The equity raised in this round will give a strong impetus to this growth initiative and further strengthen the balance sheet," ASL said.
ASL Chairman Sanjay Lalbhai: "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 across all the segments that we operate in".
The enhanced equity base and low leverage give the company significant headroom to raise further capital to pursue value accretive opportunities, he added.
Vipul Roongta, MD and CEO of HDFC Capital Advi ..
He said the funding meets its 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 shar ..
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