Supertech to raise Rs 1,600 cr by to complete 18 housing projects: Chairman

Real estate company Supertech Ltd plans to raise around Rs 1,600 crore from institutional investors by July to complete 18 residential projects underway across Delhi NCR, its chairman RK Arora said.

The company has signed a term paper with investors to raise this interim financing, and due diligence is currently underway, Arora said, but did not name the investors.

“We have recently secured approval from the High Court to arrange interim financing to complete ongoing projects and hand over the apartments to existing clients.

“We plan to raise around Rs 1,600 crore. We hope to be able to collect this amount by the end of July,” he told PTI.

Arora said there are 18 housing projects underway under Supertech Ltd, comprising around 50,000 apartments.

“We need to award 17,000 apartments to our existing customers. We intend to deliver these apartments within the next two years,” he said.

Further, he said that the company needs Rs 3,000 crore to complete the pending work on these 18 ongoing projects.

“We have receivables of around Rs 2,500 crore from customers for units sold. Moreover, we have unsold units worth Rs 10,000 crore in these projects,” he said.

Asked about bank loans and dues from development authorities, Arora said it would be around Rs 3,000 crore.

“This proposed temporary financing will be used for construction. The proceeds from the units sold and the units to be sold will be used to settle amounts owed to existing banks, NBFC companies, new investors and authorities,” he noted.

Arora said that these projects have a positive net worth and thus the company will be able to complete them with the help of new financing and amounts due from clients.

In March last year, the Delhi National Companies Law Court (NCLT) ordered initiation of bankruptcy proceedings against Supertech Ltd over a petition by Union Bank of India for non-payment of dues of about Rs 432 crore.

However, this was challenged by Supertech Arora prior to NCLAT.

In June last year, the National Corporations Law Appeal Tribunal (NCLAT) ordered insolvency proceedings to be commenced in only one of Supertech Ltd’s housing projects and not the entire company.

NCLAT had directed the formation of the creditors’ committee for the Eco Village II project located in Greater Noida (West).

“However, we make it clear that projects other than the Eco Village II project should continue as an ongoing project basis under the overall supervision of the IRP (Interim Resolution Professional),” said the NCLAT workbench.