Bengaluru-based Ma­haveer Group Raises 120 cr from Xan­der Fin

The Economic Times - - Companies - Rav­iTeja.Sharma @times­group.com

New Delhi: Bengaluru-based real es­tate firm Ma­haveer Group has raised .₹ 120 crore from non-banking fi­nance firm Xan­der Fi­nance in a struc­tured debt trans­ac­tion. The com­pany in­tends to use the funds to re­fi­nance a loan from PNB Hous­ing Fi­nance and to com­plete a 122-acre plot­ted devel­op­ment in south Bengaluru’s Ji­gani area near Elec­tronic City. Praveen Kum­bala, man­ag­ing di­rec­tor of Ma­haveer group, con­firmed the struc­tured debt trans­ac­tion. “Apart­ment sales in Bengaluru have seen a 15-20% slow­down but plots are still sell­ing well,” Kum­bala said. NBFC money, he said, is more flex­i­ble and the struc­ture is such that it is more com­fort­able for de­vel­op­ers.

The deal of­fers an in­ter­nal rate of re­turn (IRR) be­tween 18% and 19%. Amar Merani, CEO at Xan­der Fi­nance, said this money has been given to Ma­haveer group for five years. “Plot­ted de­vel­op­ments are the safest among real es­tate projects in the cur­rent slow mar­ket. This com­pany has been able to sell plots at a healthy rate, which gives us con­fi­dence,” he said.

AMAR MERANI

CEO at Xan­der Fi­nance

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