Edelweiss Special Opportunities Fund has reportedly provided a Rs 350 crore debt facility to Shreshta Infra Projects Pvt Ltd, an entity associated with Bengaluru's Adarsh Developers. The financial support will be utilized to repay ongoing loans and complete two under-construction projects. The debt facility comprises listed, secured, and rated non-convertible bonds, featuring a 41-month and 24-day tenor with a 20.5% annual interest rate. Shreshta Infra, a special purpose vehicle of Adarsh Developers, plans to infuse Rs 200 crore through convertible debentures into affiliate companies for debt settlement and allocate the remaining Rs 150 crore for specific projects and general corporate purposes. Acuite Ratings assigned a 'Acuite B Stable' rating to the bonds on December 29, 2023. As of December 31, 2023, Adarsh Group had total sales receivables of Rs 1,034 crore and a cash balance of Rs 54.8 crore.
According to reliable sources, Edelweiss Special Opportunities Fund has extended a debt facility of Rs 350 crore to Shreshta Infra Projects Pvt Ltd, an entity associated with Bengaluru's Adarsh Developers. This financial support will serve to repay ongoing loans and complete two under construction projects. The debt facility is in the form of listed, secured, and rated non-convertible bonds, featuring a tenor of 41 months and 24 days. These bonds carry an annual interest rate of 20.5%, with a prepayment penalty applicable if redeemed within one year of the allotment date.
Shreshta Infra Projects Pvt Ltd operates as a special purpose vehicle established by Adarsh Developers, focusing on real estate ventures in Bengaluru. Shreshta Infra will infuse Rs 200 crore through compulsorily convertible debentures to two affiliate companies- Adarsh Nivaas Pvt Ltd and Adarsh Realty and Hotels Pvt Ltd. This fund infusion is earmarked for settling debt previously raised from alternative investment firm Oaktree Capital two years ago, as indicated in documents filed with the Bombay Stock Exchange.
Allocating the remaining Rs 150 crore prudently, Shreshta Infra plans to utilize Rs 50 crore to finance two projects-AWP Villas and AWP Apartments, while Rs 100 crore is earmarked for general corporate purposes. Stringent terms govern these projects, capping the AWP Villas' cost at Rs 285 crore and the AWP Apartments' cost at Rs 657 crore.
In the past, two funds within the Edelweiss Group have extended financial aid to Shreshta Group. As of December 31, 2023, the real estate company owed Rs 57.3 crore to ISAF III Onshore Fund and Rs 127.7 crore to India Special Assets Funds III.
Acuite Ratings assigned a 'Acuite B Stable' rating for these Rs 350 crore bonds of Shreshta Infra on December 29, 2023. Adarsh Group has a total sales receivables of Rs 1,034 crore as of March 31, 2023, with committed receivables of Rs 866 crore from unsold inventory. According to Acuite's rating report, the group's cash and bank balance currently amounts to Rs 54.8 crore.
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