Arvind SmartSpaces gains on raising funds from HDFC Capital, promoters

Arvind SmartSpaces rose 1.39% to Rs 149.10 after the company raised funds aggregating to Rs 85 crore from marquee investors.

The board of directors of Arvind SmartSpaces (ASL) at its meeting held on the 10 September 2021 has approved the allotment of 68.5 lakh equity share aggregating to about Rs 85 crore to HDFC Capital Affordable Real Estate Fund-1 (H-CARE 1) and the promoters of ASL at the price of Rs 124 per share.

Over the last few years, ASL has grown its project portfolio rapidly. The equity raised in this round will give strong impetus to this growth initiative and further 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 capitalize on emerging opportunities in the real estate space.

Sanjay Lalbhai, chairman of Arvind SmartSpaces, said: We are extremely happy to have HDFC Capital Advisors 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 gives 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 stake holders.

The conclusion of the transaction is subject to necessary approvals from the shareholders of ASL and SEBI.

The company has scheduled an extraordinary general meeting (EGM) of the company on Monday, 4 October 2021, for seeking approval of the shareholders for the aforementioned fund raising plan.

Arvind SmartSpaces is a real estate developer with operations spread across 19 projects in 4 cities (Ahmedabad, Bangalore, Pune & Gandhinagar). The company operates across multiple verticals like residential, commercial, industrial, retail, plotted developments, club houses and golf courses.

The company reported a consolidated net profit of Rs 2.50 crore in Q1 FY22 as against a net loss of Rs 4.83 crore in Q1 FY21. Sales rose by 155.69% to Rs 26.95 crore in the quarter ended June 2021 as against Rs 10.54 crore during the previous quarter ended June 2020.

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