Sobha plans to raise up to Rs1,000 cr through non-convertible debentures

Realty developer Sobha Ltd is planning to raise up to Rs1,000 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis, as the company looks to strengthen its funding options.

The company’s board cleared the fund-raising plan on Monday and authorised the investments and borrowings committee to determine and finalise the terms and conditions of the proposed issue.

The proposed issue will be carried out in one or more tranches through privately placed NCDs. Details including the tenure of the instruments, coupon rate, interest payment schedule, maturity date and security will be finalised by the committee and disclosed at a later stage, the company said in a regulatory filing.


The filing did not specify the purpose for which the proceeds will be utilised. Companies typically use proceeds from NCD issuances to refinance existing borrowings, fund project development, meet working capital requirements or support business expansion.

The board’s approval enables the Bengaluru-based developer to tap the domestic debt market when required, providing greater flexibility in managing its capital structure and liquidity.

The company also said the investments and borrowings committee has been authorised to determine other commercial terms of the issue, including the timing and structure of the proposed fund raise.

Since the issuance will be through private placement, the NCDs are expected to be offered to eligible institutional and other identified investors in accordance with applicable regulations.

The proposal was approved in accordance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations and the relevant SEBI circular governing disclosures relating to fund-raising through debt securities.

The latest approval adds another financing avenue for Sobha as real estate developers increasingly diversify their funding sources amid sustained demand for residential projects and continued capital expenditure on new developments.