Bank of Baroda has sanctioned Supertech Group's resolution plan for its Dehradun project, allowing the delivery of over 600 homes. The bank has also approved the inclusion of a co-developer, with Supertech partnering with a local firm to restart the project. Additionally, Kotak Investment Advisors Ltd (KIAL) is investing INR 450 crore in Supertech's 'Supernova' project in Noida, which is halfway complete and projected to generate over INR 7,000 crore in revenue. Supertech, which needs to deliver over 15,000 homes and has liabilities of INR 8,000 crore, is selling land to pay off lenders and accelerate construction.
Bank of Baroda, a lender to the Supertech Group, has approved and sanctioned the resolution plan for the company's Dehradun project. This decision clears the way for the delivery of homes to over 600 buyers. The company had presented a project-specific resolution plan to the National Company Law Appellate Tribunal (NCLAT), and this is the first project to receive approval from the lender.
Bank of Baroda has also consented to the inclusion of a co-developer in the project. RK Arora, Chairman of the Supertech Group, explained that they have partnered with a local developer to resume the stalled project. He added that they will now pursue additional approvals from other lenders for their remaining projects, with the objective of obtaining approval for each project individually. Arora also mentioned that the bank did not express interest in NBCC's proposal to take over the project and instead permitted Supertech to handle the resolution.
Kotak Investment Advisors Ltd (KIAL) has recently committed to investing INR 450 crore in Supertech's stalled mixed-use project in Noida, providing a crucial financial boost to the struggling real estate developer. The 'Supernova' project, covering 5 million sq ft in Sector 94, is currently 50% complete and features the tallest residential tower in the NCR region. According to Supertech's proposal to the Noida authority, the project could generate over INR 7,000 crore in revenue upon completion. The revival of Supernova is anticipated to enable Supertech to resume its other long-delayed projects.
The Noida-based property developer is obligated to deliver more than 15,000 homes. Supertech's total liabilities, which include debts to banks and the development authority, amount to approximately INR 8,000 crore. However, the company's project receivables from both completed and upcoming projects exceed INR 14,000 crore, resulting in a positive net worth for the projects. The company has already submitted a revival proposal to the Uttar Pradesh government. Additionally, it is in the process of selling some land parcels to provide exits for lenders and to use the remaining funds to accelerate construction on its stalled projects.
The recent developments, including Bank of Baroda's approval for Supertech's Dehradun project and KIAL's investment in the 'Supernova' project, represent crucial advancements for the stressed developer. By securing financial support and forming new partnerships, Supertech is well-positioned to address its financial challenges and move forward with its construction plans. The positive net worth of its projects and ongoing efforts to sell land for debt repayment highlight the company's commitment to resolving its issues and accelerating progress. These actions are expected to significantly enhance Supertech's ability to deliver on its extensive housing commitments and overcome past delays.
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