Arvind SmartSpaces secures Rs 85cr from HDFC and other investors

Arvind SmartSpaces Limited (ASL), an Indian real estate developer, said that its board of directors has sanctioned its plan to raise nearly INR 85 crores by allotting 6.85 million shares.

According to the company, the shares were allotted to HDFC Capital Affordable Real Estate Fund-1 (H-CARE 1) and to its own promoters at the price of INR 124 per share as per Securities and Exchange Board of India (SEBI) ICDR Regulations 2018.

Arvind SmartSpaces said that the capital raised in the funding round will give a strong impetus to its growth initiative and consolidate its balance sheet further.

Vipul Roongta — MD and CEO of HDFC Capital Advisors, which is the investment manager to HDFC Capital Affordable Real Estate Fund-1, said: “This investment is an extension to our existing partnership, platform set up in 2019, with Arvind SmartSpaces. It meets our 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 share of the market.”

Arvind SmartSpaces has operations spread across 19 projects in Ahmedabad, Bangalore, Gandhinagar, and Pune. The Ahmedabad-based firm, which was founded in 2009, operates across various verticals such as residential, commercial, retail, industrial, plotted developments, golf courses, and club houses.

Kamal Singal — MD and CEO of Arvind SmartSpaces said: “The Company feels that there is a huge opportunity in real estate development in India especially in the post pandemic era. Organized developers with long term and organized capital are in a unique position to deliver customer centric products and solutions on a sustainable basis.

“This partnership will not only provide resources to pursue growth but also help in building the business further by leveraging the brands and legacy of trust that both the partners bring to the business.”

The closing of the deal is subject to required approvals from the shareholders of Arvind SmartSpaces and SEBI.