Realty firm Mahagun Developers has raised Rs 110 crore debt fund from Aditya Birla Finance to replace costlier borrowing and meet working capital requirement.
Investment banking firm Ashika Capital today said it has facilitated this funding for Noida-based Mahagun Developers.
"Ashika Capital...Facilitates Rs 110 crore of debt funding for Mahagun Developers," the company said in a statement.
"The transaction was funded by Aditya Birla Finance Ltd," Ashika Capital said.
The funds will be deployed to cut high pricing on existing non-convertible debentures (NCD's), which Mahagun Developers is planning to pre-pay. Some fund will also be utilized for general working capital purpose.
Ashika Capital President Vaibhav Jain said that "in current real estate scenario managing cost of borrowing and achieving regular sales with timely delivery of project are foremost challenge faced by a developer. This becomes more important considering slow down and loss of confidence of end buyer."
Jain said that at least 3 more deals worth about Rs 600 crore are in pipeline.
Mahagun Group CFO TK Peer said: "We do have embarked on a plan to cut costs, and taken a number of steps in this regard. As a part of this strategy, we have been working closely with Ashika capital and successfully completed a deal involving substitution of high cost cost debt with low cost borrowings."
Ashika Capital has been instrumental in facilitating large sized deals in the past few months.
Ashika Capital operates under the flagship of Ashika Group, headquartered at Kolkata. The group is a diversified financial services provider with over two and a half decades of experience in segments like brokerage, depository services, financial products distribution, corporate lending and investment banking.
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