To complete its 18 ongoing housing projects across Delhi-NCR, Supertech Ltd plans to raise Rs 1600 crore from institutional investors by July, according to its Chairman RK Arora. According to Arora, due diligence is currently underway with investors for this interim funding, but the investors’ names were not disclosed.
The Supreme Court recently approved interim funding to complete ongoing projects and hand over flats to existing residents.
Hopefully, we will be able to raise this amount by the end of July, he told PTI.
To complete its 18 ongoing housing projects under Supertech Ltd, comprising around 50,000 apartments raise 1600 crore according to Arora.
Over the next two years, we intend to hand over 17,000 flats to our existing customers,” he said.
The company needs Rs 3,000 crore to complete the pending work in these 18 ongoing projects, he said.
According to him, we have receivables of about Rs 2,500 crore from customers against the sold units, as well as unsold units worth Rs 10,000 crore in these projects.
Arora estimated that there would be around Rs 3,000 crore in bank loans and development authority dues.
The interim funding will be used for construction. The collections from sold units and units to be sold will be used to settle outstanding amounts with existing banks and NBFCs, new investors, and authorities,” he said.
With the help of fresh funding and receivables from customers, the company will be able to complete these projects.
A Delhi bench of the National Company Law Tribunal (NCLT) had ordered to initiate insolvency proceedings against Supertech Ltd in March last year in response to a petition filed by the Union Bank of India.
Supertech promoter Arora challenged this before the NCLAT, however.
The National Company Law Appellate Tribunal (NCLAT), however, ordered the start of insolvency proceedings only for one of Supertech Ltd’s housing projects.
In Greater Noida (West), the NCLAT directed the formation of the Committee of Creditors for Eco Village II.
However, other projects, other than the Eco Village II project, will proceed as ongoing projects under the supervision of the IRP (Interim Resolution Professional.
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