Debenture Drive: Omaxe Subsidiary Clears ₹190 Million NCD Issuance to Fuel Project Growth

Omaxe Ltd has announced that one of its subsidiaries has approved the issuance of non-convertible debentures (NCDs) worth up to ₹190 million, marking a strategic move to bolster funding for ongoing and upcoming real estate projects. The decision aligns with the group’s broader capital-raising roadmap and reflects growing investor appetite for structured debt instruments in the real estate sector.

 

Key highlights of the issuance

 

- The board has cleared the issuance of up to 1,994 unrated senior secured NCDs, each with a face value of ₹10 lakh

- The total issue size aggregates to ₹199.4 crore (₹1.994 billion), to be raised in one or more tranches via private placement

- The NCDs will carry a committed internal rate of return (IRR) of 12 percent, with a maturity period of up to 54 months from the date of first allotment

- Redemption will be made in full at maturity, including the principal, committed return, and any additional return if applicable

 

Security and Guarantee Structure
 

- The NCDs will be secured by an exclusive first charge on project land, leasehold rights, and development share of Grand Omaxe and Rajguru & Bhagat Singh projects

- Additional security includes a first charge on all current and non-current assets, receivables, and bank accounts related to the projects

- Personal and corporate guarantees have been extended by key promoters and group entities, including Rohtas Goel, Mohit Goel, and several private limited companies

- In case of payment delays exceeding three months, an additional 3 percent IRR will be levied over the committed return

 

Strategic Rationale and Outlook
 

- The funds will be deployed toward project execution, working capital needs, and debt servicing

- The move is part of Omaxe’s broader strategy to optimize its capital structure while maintaining operational momentum in high-growth corridors

- With real estate demand rebounding and investor confidence improving, the company is leveraging structured debt to accelerate delivery timelines and enhance project viability

 

Sources: Omaxe Ltd Board Meeting Outcome