Mahagun Developers raises Rs 110 crore funds through Ashika Capital
Ashika Capital operating under the flagship of Ashika Group, offering a wide spectrum of investment banking services facilitates Rs 110 crore of debt funding for Mahagun Developers, one of the top real estate developers in New Delhi.
The funds will be deployed to cut high pricing on existing NCD’s which Mahagun Developers is planning to pre pay. Some fund will also be utilized for general working capital purpose. The transaction was funded by Aditya Birla Finance Limited.
This transaction was solely advised by Ashika Capital Ltd, a Mumbai based investment banking firm.
Vaibhav Jain, president at Ashika Capital, opined 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. We take pride here to work out best fit financial models for our developer clients and factoring in appropriate pricing and time factor. We currently are mandated by renowned names across geography and are working hands on with their core finance team to achieve desired results. We are more focusing on building robust financial model with proper financial closure keeping in mind market scenario. Our team expertise coupled with market know how are reasons for our success. You will soon hear at least 3 more deal closures of cumulative 600 Cr plus in another 45 days. ”
“The chill experienced in the real estate sector for the last couple of years is not showing any signs of abatement, particularly in NCR region. High borrowing costs coupled with unfavourable market sentiment is squeezing the developers. Thanks to long term strategic planning and internal controls, Mahagun has not only been able to hold its head above water, but also ensured un-interrupted construction on all its projects. However, 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 team led by Mr Vaibhav jain and successfully completed a deal involving substitution of high cost cost debt with low cost borrowings. It has been a wonderful experience working with Aashika team and I feel we can together go a long way in our journey of growth added TK Peer CFO Mahagun Group.
Ashika Capital has been instrumental in facilitating large sized deals in the past few months. Quite recently, the company successfully placed NCD to the tune of approximately $8 million for Unique Builder and Kemaaya JV for SRA project at Kandivali east. In addition, the company is pursuing quite a few mandates that are nearing closure.